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Ark Dev Settles Lawsuit for Reported $40 Million

It is unclear at this time how the settlement will affect the future of Ark, if it does at all.

48 Comments

Studio Wildcard, the developer behind popular PC and console dinosaur game Ark: Survival Evolved, this week reached a settlement agreement with Dungeon Defenders developer Trendy Entertainment. The company accused Studio Wildcard and one of its staffers of improper behavior and more as part of a nasty case that dates back many months.

No Caption Provided

As is often the case with these matters, terms of the settlement were not publicly disclosed. However, Studio Wildcard co-founder Susan Stieglitz said on Twitter that Trendy was hoping to get more than a half-billion. "lol they want 600 million," she wrote. Studio Wildcard ended up paying "40," she wrote in a DM to a fan who then shared it on Reddit and Imgur.

Kotaku reports that the settlement was decided upon this Wednesday, April 13, after mediation took place between Studio Wildcard and Trendy in Gainesville, Florida, where Trendy is headquartered. On that date, Stieglitz wrote on Twitter, "Long day again at the lawyers."

Ark has been a surprise hit since its launch last summer, and it recently expanded with the release of a free-to-play version called Survival of the Fittest. The game has sold millions of copies and is one of the top ten most-played games on Steam right now. This is all to say the game is likely a money-maker, but how things will change in the future after Studio Wildcard pays the settlement fee remains to be seen.

We have followed up with Studio Wildcard to ask that very question and will update this post with anything we hear back.

Studio Wildcard was sued by Trendy Entertainment in December 2015. Trendy claims one of its former employees, designer Jeremy Stieglitz--Claire's husband, who has since resigned--breached his contract with Trendy and has been working in secret on Survival Evolved. Jeremy Stieglitz also reportedly repeatedly attempted to poach Trendy employees to help start Studio Wildcard.

In March, Studio Wildcard said Trendy's claims were "irrelevant, immaterial, impertinent, and scandalous," going on to say the company's complaint "reads more like a salacious tabloid story than a short and plain statement of the ultimate facts."

The case was scheduled to go to court on April 27 before this settlement deal was reached. Had Trendy been successful in its request for an injunction, it could have meant that Studio Wildcard needed to stop work on Survival Evolved and possibly remove the game from sale across PC and Xbox One.

You can get all the details on the case in GameSpot's previous coverage. We will continue to cover this case and bring you more news as it becomes available.

The full, finished version of Ark: Survival Evolved is due out later this year for PC, Xbox One, and PlayStation 4.

Got a news tip or want to contact us directly? Email news@gamespot.com

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Thanatos2k

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Edited By Thanatos2k

People were calling this a spurious lawsuit, but it's clear there was some merit or they wouldn't be settling for 40 million!

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JustinGoSka

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Trendy is just bitter because they couldn't come up with anything even close to being on the level of Ark. I hope Ark's success encourages more developers to strike out on their own and make games how they want to make them.

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MoreThot

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Looks like a small irrelevant companies jealousy towards another more successful one. Nothing new.

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Heqteur

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They first claims the accusations are irrelevant bs and all and then they settle an agreemenymt outsidw of court. It looks crazy suspicious and I really wonder what Studio Wildcard didn't want usto learn throuh the courthouse. Because if they accepted to settle what they called a case of sallacious tabloid story, it has to mean they prefer to limit what's going to go public about that. They only way to ensure the kind of secrecy they wanted is by settling of course.

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froidnite

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@heqteur: Or settling to give 40 million $ could be the cheaper and less messy option compared to the other. Settlements rarely reflects guilt and more often than not is about the cheaper and more convenient option. Hence the large number of frivolous law suits you see everywhere.

Not saying Wildcard isn't guilty of everything here, just saying a settlement means nothing.

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Nabinator

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@froidnite: This situation was potentially very messy, but glad they settled. Probably cheaper, and definitely more convenient. With the sales they're making, it won't bust them. And the company can now focus its time on the game's development, which is good news for us. Can't wait for the finished version to hit the PS4.

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mrbojangles25

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Hopefully they can make a good game with that 40 million!

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MartynGiles

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I'm sure that the guy did wrong and that Trendy deserved something but the fact that they wanted $600 million and settled for 40 suggests that there was a lot of 'trying their luck' about this claim.

I wouldn't settle for less than I thought I deserved if I truly believed that I deserved it. If a judge had awarded less then fair do's but that didn't happen here.

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Silverline62

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everyone wants a piece of the pie.

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CrouchingWeasel

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Edited By CrouchingWeasel

All of you congratulating Trendy need to understand what this "contract" was. It was a "non-compete", basically you'd have a lot of trouble finding a job in that industry without signing one yet if you do sign one & need to find another job for whatever reason then you're fucked. You're stuck not being able to get work in an industry that for most who work in game development is where all of your experience is. They're disgusting, hateful pieces of paper that hurt employees & hinder innovation & anyone who tries to force someone to sign one is scum as far as many people in the tech industry are concerned. That being said the guy was stupid enough to sign one. The sooner they're outlawed the better.

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mrbojangles25

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@CrouchingWeasel: non-competes are a necessary evil; if you own a company that has a good reputation and a good product but is somehow struggling to make ends meet, and I come in and buy it from you for a good amount of money, it'd be silly of me to not have you sign one.

You, suddenly a rich person, could just move down the street, make the same product, poach my employees b/c they might be loyal to you, and suddenly the business I saved from your mismanagement is defunct. Worse case scenario, your second business goes bankrupt also because you don't know how to manage stuff, and suddenly the world is devoid of a product you believed in, all because you got greedy and possessive.

I understand sometimes there are hostile takeovers (or whatever) and people are essentially forced or bribed to sign non-compete contracts, but they're generally well-paid for this and given far, far, far more money for the duration of the contract than they would have made just working for the duration.

Anyway, the moral and philosophical issues are moot; the guy signed a contract, if he didn't honor it that's his problem.

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Abram730

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@mrbojangles25: non-competes = slavery. It's a slippery slope. minimum wage employees are being asked to sign them. There is an argument for executive employees, and owners.. I think the value that changed hands needs to be looked at and there needs to be legislation as a guide.

Yet what we see with these contracts is that it is used to force you to continue working at a company as if another company hires you they get taken to court even though they didn't sign the no-compete.

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mrbojangles25

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@abram730: yeah if you are the creative, lead talent behind an enterprise a non-compete makes sense, but for average joe programmers or whatever I don't think it is appropriate (unless they got a huge pay bonus or equivalent)

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ACMC85

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@CrouchingWeasel: Non competes aren't terribly ridiculous depending the duration. I think a year to two max is reasonable, given compensation. You can't have this knowledge and then go to a competitor for them to just catch up in mere months, what took years and hardwork. Also, the poaching is what really hurt it I think.

The guy had a one year non compete. It's not awful. At least both sides settled and will continue.

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adayinverse

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Edited By adayinverse

@ACMC85: I thought his non-compete was 36 months? That's what I remember reading in a previous article about this.

Edit: nevermind. It was 3 years, but they reduced it to one year in August. Just shows how ridiculous that company is, most big corporations don't go for that long.

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CrouchingWeasel

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@ACMC85:

And what "knowledge" is that exactly? How does one exploit "knowledge" from making a shitty tower defence game in working on a 1st person action survival game? The 2 games couldn't be any more different in nature or scope. The only reason that Trendy had any grounds is that he was stupid enough to sign their garbage agreement to begin with & they were big enough parasites to see that they could legally steal profits from something they barely had any rights to. The whole thing is a disgusting example of why non-competes are universally hated & need to be outlawed ASAP.

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Carpetfluff

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@CrouchingWeasel: The point being he did sign it. He did understand it and he broke it. Constrictive they may be, but if you agree to one, then stick to it.

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CrouchingWeasel

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@Carpetfluff:

Read my comment again, Cletus

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grin89

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@Carpetfluff: I never read the eula for my iphone, I'm still not a human centipad.

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xWinson

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Edited By xWinson

@grin89: Awesome South Park reference aside.

A job contract is definitely something that people should read before they sign up. Non-compete contract are pretty common and isn't really one of those hidden ninja thing that screws someone over unexpectedly - assuming the claims were true the employee and company knew what they were risking.

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Mirimon78

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Edited By Mirimon78

@xwinson: meh, people don't get jobs generally with the intent of leaving and then fighting said job.the real reason is a prudent, but cowardly action to block any competition in what is allegedly a free trade region. It goes further in prohibiting people from bringing in any income for that period in the field (likely their only field) they know. It is disgusting, and while one must agree to it, they also cannot get the job without it. Its disgusting.

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p1p3dream

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@Mirimon78: I had trouble following this comment- but this situation is the reason that Non-Competes exist. What this guy did was blatantly wrong and a huge violation of his contract as well as business ethics.

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Abram730

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@p1p3dream: So you believe humans should be slaves then? That is basicly what you are saying.

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ladymulti

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Contracts are contracts. I can't fault anyone here really since it seems they've already settled it and everything is still clear to continue. I know it sucks for the rest of the Dev team but... I suppose this is better than the time to take it to court as well as the chance of a higher payout for the plaintiff.

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holenjd

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They ended up settling out of court which usually means at least some of it was true.

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UFOLoche

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@holenjd: Or, more than likely, they don't want to go through a long and contrived legal battle that will potentially impact their business and might even cost more at the end of the day, even if they do win.

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Thanatos2k

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@UFOLoche: A long and contrived legal battle wouldn't cost 40 million. They clearly knew they were at least partially in the wrong.

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Abram730

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@Thanatos2k: No people settle when they are 100% right. The lawsuit probably would have cost more to fight. Not being able to sell ARK or develop it for years would be a problem if there were an injunction.

The legal system is broken.

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Thanatos2k

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@abram730: "No people settle when they are 100% right."

Actually this happens all the time, for the reasons stated - cost.

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AscendedMaster

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This is such bs. Why can't they go after crappy games instead of this good one? If this game fails cuz of this I will lose even more faith in humanity, if I even have any left at this point.... 40 million because of the dumbest possible reason, they legit did NOTHING wrong. This needs to stop, our court system is clogged up with all these pointless cases. Just like that dumb broad trying to sue Rockstar for a generic picture of a blonde that could be ANYONE. Can I please wake up from this pathetic dream already?

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Thanatos2k

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Edited By Thanatos2k

@ascendedmaster: "Why can't they go after crappy games instead of this good one"

That's a pretty horrible attitude. So because they have a good game they should be able to get away with whatever?

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HuSSaR83

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@ascendedmaster: They put the game few times on sale on Steam like they always do and 40mil will be made back in no time...they already made 100s millions on this game thats why they settled so they dont lose more.

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MILK

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@ascendedmaster: They did a ton of things wrong. Stieglitz violated his contract with Trendy a bunch and used his wife's maiden name (she is not in the game development industry) at Wildcard to try to hide his involvement.

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Abram730

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@milk: Illegal contract that violates the 14th amendment of the constitution and anti peonage laws in the USA IMO. That is slavery was abolished yet it's still here.

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Jacanuk

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Edited By Jacanuk

Hmm, coming from Kotaku i would as others wait abit to get it confirmed .... Kotaku is worse than a tabloid magazine.

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Mirimon78

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@Jacanuk: ???

Said somebody on gamespot.....

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Oopiedoopie

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I'll wait to see an official story before believing any garbage that spews from the kotaku cesspool.

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ArcaneSmile

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Sounds like they were guilty if they were willing to part with $40 million.

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deactivated-610c3819be19e

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@arcanesmile: that's not how it works. If you read the article if they never settled then Trendy could file to have the game taken off shelves until everything was done. If anyone know how long this type of litigation goes. it could of meant the end for the game period. It was either pay them something or the possibility of losing the game all together.

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hystavito

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@WingChopMasta: Injunctions like that are also not guaranteed though and often when they are granted it's because they have a good case.

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jinzo9988

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Edited By jinzo9988

@arcanesmile: Maybe, maybe not. Sometimes people settle because they don't have the money to fight something in court. It's what keeps patent trolls afloat. Either that or they can't afford losing the suit.

What the guy did was wrong but I think they wanted way, way, WAY too much out of them. It's the legal equivalent of bullying, and it's in hopes of somehow actually winning it or hoping the other side caves like what happened here.

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deactivated-64efdf49333c4

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@jinzo9988: Oh, they were guilty. The company was founded by Steiglitz's wife, a cupcake baker, under her maiden name. They then alleged Steiglitz actually wasn't working at the company and was merely serving in a consultation fashion.

If none of that sounds suspicious to you, then I've got a bridge to sell you.

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mpl911

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@Barighm: "I've got a bridge to sell you."

Haha - nice one!! Good line.

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Alurit

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@arcanesmile: it does not mean they were guilty, just that they could have lost the lawsuit. also it's not a criminal lawsuit, but a civil one, so guilty might not be the right word to use

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zerooo0

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F TRENDY! Boycott their games.

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Pyrosa

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@zerooo0: Ummm... No. Contracts are written for a reason. The guy clearly, repeatedly violated his contract, and directly made money by doing so.

He got off easy, regardless of whether you're an ARK fan or not.

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MILK

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Edited By MILK

Wildcard/Stieglitz was definitely guilty. I bet Trendy could've gotten more, but I guess they felt $40million was nice enough payday to avoid the time and money it'd take to go to court.

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