GT Interactive has filed a civil complaint against Midway Games, Inc. to the tune of at least $35 million dollars. The lawsuit claims that "the Midway defendants intentionally engaged in a systematic and ongoing campaign of bad faith tactics designed, among other things, to minimize their own costs and prevent GT Interactive from attaining performance standards required for retention of its distribution rights under certain agreements."
What a mouthful. GT goes on to say that these bad faith tactics included, "repeated failure to give timely notice of new products, provide game development schedules, deliver usable, 'bug'-free master game disks..." and more. Stemming back all the way to February of 1997, GT and Midway have licensed and sub-licensed games to each other over the course of this relationship. Apparently, GT felt that it got the short end of the stick. Game Informer will continue to keep you posted on this as it develops.