GRVY » Topics » Other litigation matters

This excerpt taken from the GRVY 20-F filed Jun 30, 2009.
Other litigation matters
 
As of December 31, 2008, we are a defendant in two separate lawsuits claiming damages for breach of contract in which we have been a party. In May 2007, YNK Korea Inc., formerly known as Sunny YNK Inc., our former investor for Ragnarok Online, filed a lawsuit against us claiming that we failed to distribute the earnings from a certain amount of net sales due to the embezzlement of royalty revenue committed by our former chairman and from license fees from overseas licensees. The claim of the lawsuit amounts to approximately Won 1,344 million. In October 2006, Softstar Entertainment Inc., our former licensee in Taiwan, Hong Kong and Macao for R.O.S.E. Online, filed a lawsuit against us insisting that the game program for the open beta testing of the game in Taiwan which was provided by us was different from the program used for the closed beta testing and was materially


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deficient, thereby causing them to incur a loss in their business. The license agreement with Softstar Entertainment Inc., which was entered in February 2005, was terminated by the plaintiff in December 2005 and the open beta testing of the game was terminated in March 2006. No court dates have yet been set and the likely outcome of these lawsuits cannot be determined at this time.
 
This excerpt taken from the GRVY 20-F filed Jun 27, 2008.
Other litigation matters
 
As of December 31, 2007, the Company is a defendant in two separate lawsuits claiming damages for breach of contract in which the Company has been a party. In May 2007, YNK Korea Inc., formerly known as Sunny YNK Inc., our former distributor for Ragnarok Online, filed a lawsuit against us claiming that we failed to distribute the earnings from a certain amount of net sales due to the embezzlement of royalty revenue committed by a former chairman of our Company and from license fees from overseas licensees. The claim of the lawsuit amounts to approximately Won 1,344 million. In October 2006, Softstar Entertainment Inc., our former licensee in Taiwan, Hong Kong and Macao for R.O.S.E. Online, filed a lawsuit against us insisting that the game program for the open beta testing of the game in Taiwan which was provided by us was different from the program used for the closed beta testing and was materially deficient, thereby causing them to incur a loss in their business. The license agreement with Softstar Entertainment Inc., which was entered in February 2005, was terminated by the plaintiff in December 2005 and the open beta testing of the game was terminated in March 2006. The likely outcome of these lawsuits cannot yet be determined.
 

EXCERPTS ON THIS PAGE:

20-F
Jun 30, 2009
20-F
Jun 27, 2008
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