4Kids Entertainment has been sued by the Japanese anime studio that created the hit Yu-Gi-Oh! and Pokémon series, charging that millions of dollars are owed for making secret pacts with TV networks and home video distributors.
TV Tokyo Corporation and Nihon Ad Systems filed suit in New York federal court, alleging that 4Kids also made improper royalty deductions for the cost of the dubbing and other expenses. They are seeking over $4 million in damages and other relief for breach of contract and fraud. In addition, the companies want past money owed.
The companies announced that they have canceled their licensing agreements with 4Kids due to the alleged breaches of contract.
More on this story at The Big Cartoon Forum