4Kids refuse to give up Yu-Gi-Oh

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On Wednesday, March 30, 4Kids Entertainment filed a Form 8-K report with the United States Securities and Exchange Commission addressing TV Tokyo & Nihon Ad Systems’ (NAS) lawsuit against 4Kids and immediate termination of 4Kids’ license to the Yu-Gi-Oh franchise. In the report, 4Kids asserts that TV Tokyo and NAS’ termination of 4Kids’ license is not valid because the Japanese companies did not respect a contractually obligated ten-day “notice and cure provision.” 4Kids also asserts that it did pay the Japanese companies a one-million dollar “good faith” payment on March 17 in order to arrange a March 18 meeting to discuss the dispute. 4Kids states that despite the one-million dollar payment, TV Tokyo and NAS still filed a lawsuit on March 24. TV Tokyo and NAS claim that 4Kids “abruptly terminated” the March 18 meeting without offering any resolution.

4Kids asserts in the 8-K report that should it lose the domestic rights to the Yu-Gi-Oh franchise, the company will take any necessary steps to remain in business, including possibly filing for Chapter 11 bankruptcy and countersuing TV Tokyo and NAS to recover damages caused by the lawsuit.

Source: Anime News Network