Former Gearbox Lawyer Accuses CEO Randy Pitchford Of Taking Secret $12 Million Bonus In Lawsuit Gearbox Calls 'Absurd'

Screenshot: Borderlands 2, Gearbox Software

The former general counsel of game studio Gearbox (Borderlands, Aliens: Colonial Marines) and CEO Randy Pitchford are suing one another in a messy legal battle that sees both men accused of violating their legal duties to the company. The suit against Pitchford is full of sensational allegations, including the accusation that the Gearbox CEO received a secret $US12 ($17) million bonus from publisher Take-Two Interactive as an advance against Borderlands profits.

Wade Callender, who served as Gearbox’s lawyer from 2010 until 2018, filed a suit on December 21, 2018 accusing Pitchford of violating various contracts involving both Gearbox and a separate real estate company that they both owned, as well as Callender’s own employment contract.

“The allegations made by a disgruntled former employee are absurd, with no basis in reality or law,” said a Gearbox spokesperson in a statement to Kotaku. “We look forward to addressing this meritless lawsuit in court and have no further comment at this time.”

Callender’s suit was filed one month after Gearbox sued him, in a separate case, for fraud and breach of fiduciary duty. Gearbox alleged that Callender borrowed money from Gearbox for a home loan and tuition that he did not pay back in full, and that Callender “abused the privilege of credit card access by charging unapproved, wholly personal expenses, including family vacations, gun club memberships and firearms accessories, and trying to get six-pack abs.” Gearbox also accused Callender of destroying evidence of the home loan agreement he made with the studio. You can read that suit in full below.

According to Callender’s lawsuit, which you can also read in full below, Callender and Pitchford were longtime friends (backed up by an old tweet from Pitchford) whose relationship fell apart over the last two years.

The lawsuit alleges that Pitchford struck a deal in 2016 to receive a “personal, secretive ‘Executive Bonus’ 0f $US12 ($17),000,000 to be paid directly to Pitchford entity called ‘Pitchford Entertainment Media Magic, LLC.’” That bonus, Callender and his lawyers argue, is an advance upon royalties that would otherwise go to Gearbox’s staff. “This is particularly tragic exploitation,” the lawsuit states, “because these millions are being syphoned to Randy Pitchford’s personal accounts instead of funding the development of Borderlands.”

Callender’s most lurid allegation against Pitchford is an accusation surrounding an event that he says occurred in 2014. Callender says that Pitchford left a USB drive in a Dallas, Texas restaurant containing sensitive corporate documents for Gearbox and its partners including 2K Games, Sega, Sony, Microsoft, and others. Says the lawsuit: “Upon information and belief, Randy Pitchford’s USB drive also contained Randy Pitchford’s personal collection of ‘underage’ pornography.”

Callender also accuses Pitchford of holding parties in which “adult men have reportedly exposed themselves to minors, to the amusement of Randy Pitchford.”

Gearbox, founded in 1999, is best known for the critically and commercially acclaimed Borderland series. The studio also developed Brothers in Arms and Duke Nukem Forever. Pitchford, an outspoken figure who has become renowned for his brash statements and love of magic, has courted controversy several times over the years, most notably for his statements on the critically panned Aliens: Colonial Marines. That game also became the center of messy litigation back in 2014.

You can read Gearbox’s suit against Callender here:

You can read Callender’s suit against Gearbox here:


Comments

    underage porn.....

    i feel ill

      Ars Technica are reporting that Randy admits to leaving a thumb drive at Medieval Times that indeed have a porn video on it. But it was recording of a 'Barely Legal' 18 year old cam girl that, and this is really weird part, Randy wanted to learn how she was doing a trick in her show.

      I'd be taking what both sides in this lawsuit say with a heart attack inducing pinch of salt.

    oh man is Jim Fucking Sterling Son! going to have some fun with this

    *grabs the popcorn*
    This is going to be something else.

    Considering it is rumoured that he used SEGAs colonial marines money to fund borderlands this does not surprise me in the slightest.

    The porn thing though - wtf

    A lawyer (he obviously must be a decent one since he rep'ed Randy) doesn't just make claims of their client having underage pornography unless he knows that he can prove it. That is a huge thing to bullshit about. This spells bad news.

      In deposition specifically invokes "information and belief", which effectively means that the lawyer's knowledge of the underage porn isn't first hand, and that it's just something that he believes is true, but will protect him even if he can't prove it.

    This is gonna come up on a episode of SVU...

    Not even finished with January and good old Randy is back with another scandal.

    Randy pitchford: known liar

    So no matter how extreme the allegation can we take his denial seriously? He is a known liar after all :D dont be a lying sack of shit or when the scandals come callin nobody will beleive your denials

    Randy is a known lying lie face pants on fire, so ill tale the word of pretty much anyone else over his

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