April 1st, 2011

da → off to a great start

quick update on the lawsuit

As a publicly traded company, 4Kids is required to file a Form 8-K to inform its shareholders of major events.

In the report, 4Kids stated that on March 27, it informed the two licensors that their letter of termination "did not comply with the 10 business day notice and cure provision" written in the agreement, and states that it has rejected the termination letter "as wrongful and devoid of any factual and legal basis." 4Kids further reported that the licensors reiterated their intent to terminate on March 30, and that the American company intends to "vigorously oppose" said termination.

4Kids said that it made a US$1 million payment "as a show of good faith" in order to earn a March 18 meeting to resolve the claims in the audit. However, the licensors moved forward with the lawsuit filed on March 24.

...The American company will do whatever is necessary to maintain its business, "including the potential filing" of a Chapter 11 bankruptcy petition, and that it will seek to recover damages to its business caused by the licensors' actions.

4Kids a pretty stubborn mule.