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Perpetual Accused of Fraud, Breach of Contract Following Gods & Heroes Cancellation

Posted Tue, Dec 11, 2007 by Cody Bye

Kohnke v. Perpetual - The Opening Round

Ten Ton Hammer has come into possession of court documents naming Perpetual Entertainment, Inc. as defendant in seven counts of business misconduct, ranging from multiple counts of fraud to material breach of contract to fraudulent transfer of holdings. The plaintiff, Kohnke Communications, alleges that Perpetual transferred valuable assets, including the Star Trek Online license, before liquidating its assets; intending to defraud creditors like Kohnke out of fees for services previously rendered. And that's not all Kohnke is accusing Perpetual of. We break down the legal jargon and attempt to make some sense of this rapidly developing story, asking what this could mean for the future of Perpetual and Star Trek Online, in this exclusive article.

"Kohnke alleges that the scheme to defraud Perpetual's creditors goes far deeper than paper transfers to a malformed corporation. According to Kohnke, Perpetual canceled Gods & Heroes: Rome Rising in large part due to the more than $280,000 in incentives that would be owed to Kohnke upon the launch of the moribund game and the subsequent financial impact on the development of Star Trek Online."


Check out the whole story here, then discuss the ramifications of this incident in our forums!


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