A gaming website, Gearbox Publishing, has settled a $7 million lawsuit with a game publisher over allegations that the company withheld payment to the publisher for work done by the website’s staff, including employees who worked on games for the publisher.
The settlement, which was made on Wednesday, resolves a class-action lawsuit filed in 2014 against Gearbox and several of its executives, including Chief Executive David Poling.
In a statement, GearBox Publishing said it had agreed to pay $5 million to the plaintiffs and pay $1 million to third parties.
The company has denied the allegations in the lawsuit.
It said it was unaware of the settlement when it made the announcement on Wednesday.
The class-actions lawsuit said Gearbox failed to pay out royalties and that Gearbox did not provide any evidence that any of its employees worked on the website for the company.
In the complaint, the plaintiffs said GearBox had failed to deliver payments for the work of employees from 2014 to 2016, and that the employees had to sign non-disclosure agreements.
They also said the company failed to properly account for the costs incurred by the company’s operations.
Gearbox has denied all allegations.
The company said it has no intention of paying the settlement and it will vigorously defend the matter in court.
In an interview with The Associated Press, Mr Poling said Gear Box Publishing would never make any payment to a publisher unless there was evidence to support the allegations.
He said Gear box was “not a rogue publisher” and that it was “a really great publisher”.
“They’re the ones that made us where we are today,” Mr Polings said.
The Associated Press reported that GearBox will pay $7.5 million for the Class Action Settlement, which will be divided among the plaintiffs.
The court documents in the case said the plaintiffs would not be able to recover any money from Gearbox.
In addition to Mr Polsons comments, Mr Spruill said in a statement that the class-Action Settlement would not change anything about the way Gearbox operates and the way it treats its employees.
“Gearbox Publishing is a small company and as such the claims of the class members are extremely unlikely to affect the business as a whole,” he said.
“The class members will be compensated based on their contributions and not their individual pay.”
Mr Poling did not respond to requests for comment.