A lawsuit accuses the CEO behind the blockbuster ‘Borderlands’ video video games of lewd habits and pocketing a secret $12 million bonus

Online game studio Gearbox Software program is engaged in contentious authorized battle with the corporate's former normal counsel, Wade Callender. Gearbox initially filed a lawsuit towards Callender alleging that he misused firm funds for to pay for tuition, a house mortgage, and different private bills. In a countersuit, Callender leveled a number of critical allegations towards Gearbox CEO Randy Pitchford, accusing Pitchford of taking a $12 million bonus that was meant as an advance towards earnings of "Borderlands 2," its blockbuster online game.  Callender's swimsuit additionally alleges that Pitchford as soon as left a USB drive in a Dallas restaurant containing underage pornography — although Pitchford individually informed a podcast interview that the mannequin featured within the video was "barely authorized."  In a press release issued to Kotaku, Gearbox stated the allegations have "no foundation in actuality or regulation," and the corporate plans to settle the matter in courtroom. A messy break up between a online game Gearbox and its former normal counsel has led to a authorized battle, leading to some critical allegations towards Gearbox CEO Randy Pitchford.  Kotaku studies that Wade Callender, former normal counsel for Gearbox Software program, has filed a lawsuit towards Pitchford over a number of allegations involving the online game studio, in addition to a co-owned joint actual property enterprise. Amongst different issues, Callender alleges that Pitchford secretly took a $12 million bonus from writer Take-Two Interactive that was meant to fund improvement of Gearbox's blockbuster recreation, "Borderlands 2."  Extra significantly, Callender's lawsuit additionally makes allegations of improper private conduct towards Pitchford, together with claims that Pitchford as soon as left a USB drive in a Dallas restaurant that contained confidential Gearbox paperwork, in addition to information belonging to enterprise companions together with Sega, Sony, and Microsoft — and that "upon data and perception," Randy Pitchford’s USB drive additionally contained Randy Pitchford’s private assortment of ‘underage’ pornography," says the lawsuit.  The swimsuit additionally says that Pitchford hosted events the place “grownup males have reportedly uncovered themselves to minors, to the amusement of Randy Pitchford.” Gearbox shared the next assertion with Kotaku in response to the allegations: "The allegations made by a disgruntled former worker are absurd, with no foundation in actuality or regulation. We look ahead to addressing this meritless lawsuit in courtroom and haven't any additional remark at the moment.” In a while Friday, Gearbox additionally informed Kotaku that it could pursue motion towards Callender straight over his claims about Pitchford's private conduct: "Gearbox will likely be submitting a grievance with the State Bar of Texas towards our former normal counsel Wade for disciplinary proceedings for submitting a lawsuit that features accusations that he is aware of to be unfaithful," reads the assertion, partly.  Gearbox didn't instantly reply to a request for remark from Enterprise Insider. The background of the case Callender joined Gearbox in 2010 and served as normal counsel and vp of authorized affairs till August 2018. Callender and Pitchford have been long-time associates for over 40 years, however the friendship fell aside during the last two years, in accordance with Callender's lawsuit. An outdated Twitter put up from Pitchford seems to again up that assertion.  Right here’s me enjoying guitar and singing with my buddy (and lawyer) Wade Callender. #LifeInTexas pic.twitter.com/0bI7A16ICs — Randy Pitchford (@DuvalMagic) April 9, 2016 In November, Gearbox filed a lawsuit towards Callender, claiming that he had violated the corporate's belief and used firm funds for tuition, a house mortgage settlement, authorized charges, and different private bills. The swimsuit claims that Gearbox had agreed to pay Callender's tuition for an MBA program and residential mortgage in change for his continued employment on the agency, however he left lower than a yr after acquiring his diploma.  Gearbox is asking for greater than $1 million in damages, accounting for cash Callender allegedly spent on firearms and household holidays, in addition to different expenditures.  "As an government with the corporate and absolutely realizing that Gearbox’s particular belief in him would end in Gearbox’s assured cost of his private prices handed off as enterprise bills," Gearbox's lawsuit reads. "From 2016 up till his resignation in July 2018, Callender incurred hundreds of ’ price of prices from Disneyland, Frisco Gun Membership, Gun Gear To Go, and sixpackshortcuts.com, simply to call just a few." In December, greater than a month after Gearbox filed its unique swimsuit, Callender countered along with his personal lawsuit, with claims that he had been "shamefully" exploited by Gearbox CEO Randy Pitchford. He claims that he was instructed to assist disguise from workers the $12 million cost, which had been meant as an advance on "Borderlands 2" royalties. The USB drive In an interview with "The Piff Pod," a stage magic podcast, Pitchford gave what seems  aspect of the story as regards to the USB flash drive. The podcast episode was uploaded a day after Callender filed his lawsuit.  In keeping with a report in Ars Technica, Pitchford stated that he left a USB stick containing confidential paperwork at a Medieval Occasions Dinner & Match restaurant. The stick was discovered by an worker, who accessed the drive, which contained details about future Gearbox initiatives — in addition to pornographic materials, he stated. Nonetheless, it was a video that includes a mannequin who goes by the net deal with "Solely 18," he stated. Pitchford, a stage magic fanatic, informed "The Piff Pod" that he had saved this specific video to the USB drive as a result of he believed that the mannequin used a sexually-explicit magic trick within the video, and he was attempting to crack the key. He described it as "barely authorized porn," seemingly in an try and refute allegations that it was little one pornography.  Callender additionally alleged that Pitchford used Gearbox funds to host "Peacock Events" at his house, the place grownup males had uncovered themselves to minors. Because the Dallas Morning Information studies, Pitchford and his spouse made a daily behavior of internet hosting a non-public "Peacock Theater" of their house, that includes magicians and selection acts, although the content material isn't described as sexually specific. 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