THQ is being sued by Adidas for $10 million after it failed to bring keep-fit title MiCoach to market, according to reports.
The Oregonain claims that the sports giant has filed a lawsuit through the Multnomah Country Circuit Court in Oregon, US, for breach of contract after a deal signed in December 2010 meant THQ had to release the product by January 2012.
The software was designed to measure exercise and was being developed to compete with rival products such as Nike+ and Garmin watches.
Adidas is seeking damages of $10.6 million as well as an injunction against the publisher from selling the rights to a MiCoach-related title.
The lawsuit says that in December THQ told Adidas it was unable to finish the title after a series of lay-offs at the troubled company directly affected the game’s development.
Adidas has also claimed that THQ has refused to pass on the app to a different developer despite being unable to complete the project.
The lawsuit would be a further setback for the troubled publisher, which last month was forced to lay-off 240 workers as part of sweeping cost-cutting measures across the company. It has also been threatened with delisting from the NASDAQ stock exchange if it fails to turn round its fortunes.