TimeGate hit with $7.35 million in damages over SouthPeak suit

SouthPeak Interactive has been successful in an appeal on its long-running lawsuit with TimeGate Studios, leaving the Section 8 developer facing heavy damages.

Last week, the US Court of Appeals ruled in favour of SouthPeak in the latest in a series of back-and-forths dating back to 2008.

TimeGate originally filed suit against SouthPeak over unpaid Section 8 royalties and localisation costs, but SouthPeak responded with its own suit. Third-party arbitration ruled in favour of SouthPeak, but a federal court overturned the decision in March last year.

Unfortunately for Timegate, the success of SouthPeak's appeal means the arbitration decision stands, and it is liable for $7.35 in damages and the loss of the Section 8 property.

Timegate told Polygon that it met yesterday to discuss how the decision affects its future and that of recently-announced project Minimum, which was supposed to into alpha on Steam Early Access earlier this week.

There was a time when "the guys suing SouthPeak over Section 8" was Timegate's most frequently-cited descriptor, but now they're "the guys who seem to have made most of Aliens: Colonial Marines". It laid off a lot of staff last month.

Thanks, PCGamesN.