#gate five

Beyoncé two-stepped her way out of a lawsuit from a video game company that sued her for allegedly backing out of a deal to create a motion sensing dance game.

Gate Five filed the lawsuit in New York in April 2011, claiming that the diva ditched the Starpower: Beyoncé project after she made “extortionate demands” for more compensation. Her demands also allegedly caused Gate Five to lay off 70 people during the holidays, according to the lawsuit.

The superstar’s argument was “that she had a valid contractual right to exercise termination provisions after Gate Five was unable to fulfill obligations to obtain $5 million of committed financing for the project,” according to Billboard.

Gate Five countered in stating that it was on the verge of closing a $19.2 million financing contract and was asking for damages amounting in hundreds of millions of dollars in profits that could have been made had the project fallen through.

Both a New York Superior judge and lower state appeals court denied Bey’s motion to dismiss in late 2011 on the basis that she hadn’t objected to the loan at the time.

Gate Five conducted its own investigation to discover whether the "Grown Woman" singer had dropped the deal in the interest of making a better business deal with a competitor. The company requested documents including a possible audit conducted by her law firm on the management company ran by her father but her attorneys called it “a fishing expedition” and a breach of attorney-client privilege.

In the end, both parties submitted papers in court to discontinue the claims.