In the lawsuit, software developer Gate Five accuses the 'Halo' singer of driving '70 people into unemployment' the week before Christmas because of her last minute decision.
Beyonce Knowles has been slapped with a lawsuit for breach of contract. Software developer Gate Five filed the suit against the "Single Ladies (Put a Ring on It)" hitmaker in New York on Tuesday, April 26, accusing her of bailing out a motion-sensing video game called "Starpower: Beyonce".
In the documents obtained by TMZ, the company claimed to have made a lucrative deal with the 29-year-old in June, but after the deal was in place, the songstress "made an extortionate demand for entirely new compensation terms she wanted". It was further noted, "When her maneuver backfired and drove away the financier, she pulled out of the project in breach of the agreement."
According to Vulture, Gate Five founder Greg Easley detailed in an interview, "In early December everything was still a go. And then the week of Christmas, she said that's it, I don't want to hear from you guys, go away, resulting in 70 people losing their jobs." He added, "We'd much rather make a game than litigate. But we want to recover damages that Gate Five suffered."
Gate Five now is seeking more than $100 million for "a bad faith breach of contract" in addition to the $6.7 million it invested into the venture.