Earlier this year we reported on the legal dispute between Gearbox's Randy Pitchford and the studio's former legal counsel, Wade Callender. In the first wave of allegations, Callender made some sensational and lewd accusations against his former boss, but most damaging of all was the allegation that Pitchford had an agreement for a secret $12 million USD bonus for himself based on the planned success of Borderlands 3.
Now Callender and his legal team have returned with more detailed allegations pertaining to the bonus, and they're essentially arguing that Pitchford has a duty of care to the business which goes at odds with the alleged personal bonus. The 76-page filing from June 12 includes revised documentation with reference to a $15 million payment (apparently $12 million for Pitchford, the other $3 million to CFO and fellow co-founder Stephen Bahl), with an amendment to the original contract that mentions a "Bonus for satisfaction of dedicated executive requirement."
The new evidence suggests that there's a "recoupable" $15 million bonus due to Pitchford and Bahl in three instalments, tied to milestones for Borderlands 3, the studio's upcoming loot shooter. The word "recoupable" is also key as it suggests that the funds are linked to the publisher's existing financing of the project, further complicating matters. Notably, the clause seems to suggest that the funds will be rediverted to Pitchford's personally-owned company - Pitchford Entertainment, Media, and Magic.
Given the ownership structure of Gearbox, which sees Pitchford controlling a 51% stake, it's a complicated situation, but on face value, it appears that profits from the game will, according to this contract amendment, be redirected to Pitchford and Bahl instead of being invested back into the company. Whether this nuanced point of contention is illegal or not is going to be settled by the courts, it would seem.
With both sides still firmly entrenched in this dispute, it seems as though this legal battle will continue to run, although it's notable that Callender and his team have highlighted Gearbox's previous claims that it "will be filing a grievance with the State Bar of Texas against our former general counsel Wade for disciplinary proceedings for filing a lawsuit that includes accusations that he knows to be untrue." Apparently, that grievance has not been filed. Make of that what you will.
Whether all this will be enough to derail the momentum building around Borderlands 3 and its coming launch, remains to be seen, but it's still dragging the studio through the mud and providing an unwanted distraction when all eyes should be focused on launching the game.