Page 1 of 1

STO: Perpetual Sued by PR Firm - Breach of Contract

Posted: Wed Dec 12, 2007 9:30 am
by Istik
http://www.shacknews.com/onearticle.x/50323
The full text of the seven-count complaint reveals additional details on Kohnke's suit against Perpetual. Among the claims, the complaint levies charges of fraud against P2, Perpetual, and Perpetual employees Chris McKibbin and Josh Keene.

"The reason that Gods & Heroes was cancelled had nothing to do with the commercial expectations for that game--it was cancelled solely due to the desire of Keene, McKibbin, and P2 to concentrate on Star Trek Online, which they believed was adversely affected by Gods & Heroes," the complaint reads.

Kohnke alleges that Perpetual owes it $10,675 in outstanding invoices, in addition to fees for its work promoting Gods & Heroes. Depending on the game's success after launch, Kohnke would be entitled to a minimum of $70,000 and a maximum of $280,000. The complaint alleges that Kohnke's work on promoting the game should entitle it to the maximum amount.

Posted: Thu Dec 13, 2007 10:11 am
by Istik
Kohnke v. Perpetual: The Opening Round on TenTonHammer reports on a lawsuit filed by PR company Kohnke Communications against Perpetual Entertainment, among other things, for breach of contract, fraudulent transfer, and fraud. Late last month it came to light that a new company named Perpetual LLC had acquired Star Trek Online and Perpetual Entertainment in a report that suggested this may have been a way of skirting creditors . The following excerpt from their legal complaint indicates Kohnke also believes that shenanigans took place to get out of paying them what they are owed:


"Star Trek Online Executive Producer Daron Stinnett published comments on November 28, 2007 at startrek-online.net, flatly denying that Perpetual was in the process of liquidating and representing that Perpetual was still an ongoing concern: 'There was also a report about PE liquidating our assets. That report relates to a transaction that took place a while back. And while I can't go into details right now, I want to assure the community that the entire Star Trek team is still here working hard…'

"Just one day later, the story changed dramatically. On November 29, 2007, Keene [Joseph Keene, an officer of both Perpetual and P2 with a 'significant equity stake in the company'] confirmed to counsel for Kohnke that Perpetual had executed the ABC, and that all of Perpetual's assets were in the hands of Perpetual ABC. However, Keene also admitted that, prior to executing the ABC, Perpetual transferred certain assets to P2.

"On information and belief, the assets transferred to P2 include Perpetual Entertainment trademarks and copyrights, the perpetual.com domain name, and assets related to Star Trek Online, including code and the license… Perpetual received less than market value for the assets it transferred to P2, and the transfer made Perpetual insolvent (or worsened Perpetual's existing insolvency)."