Kohnke Communications, a public relations firm which represents a number of MMO developers, is suing Perpetual Entertainment for breach of contract, several counts of fraud, and transferring assets, including Star Trek Online, to a new company before liquidating their assets.  The suit also claims that Gods and Heroes was canceled so that PE could avoid payments owed to Kohnke on the game's launch. Ten Ton Hammer has obtained court documents, and has further details on this story.

December 11, 2007 - Details surrounding Perpetual Entertainment's dealings subsequent to the cancellation of Gods & Heroes are coming to light as Ten Ton Hammer uncovered court documents of a new complaint just submitted to California's Superior Court last week. The allegation: the San Francisco-based developer fraudulently transferred valuable assets (like the Star Trek Online license) to an insider-owned corporation at a loss, leaving those with a financial stake in the now-defunct MMORPG Gods & Heroes: Rome Rising without hope of payment save legal recourse.

According to documents received last Friday in California's Superior Court for the County of San Francisco, public relations firm Kohnke Communications, Inc. – best known for promoting the efforts of numerous MMORPG developers like EA Mythic, Red 5, Turbine, and NetDevil – is suing Perpetual Entertainment, Inc. for breach of contract, fraudulent transfer, fraud, and various other charges for damages between $80,000 and $290,000, perhaps much more in terms of punitive or exemplary damages.

The complaints stem from allegations that Perpetual sold valuable assets like the Star Trek Online (STO) license to P2 Entertainment, Inc., a thinly veiled yet separate corporate entity, before executing the Perpetual ABC or "Assignment for the Benefit of Creditors" (a liquidation mechanism allowed by states like California as a less expensive alternative to the extensive litigation surrounding bankruptcy). The case could have drastic implications for future of the pre-alpha Star Trek Online title.

Read the full story on Ten Ton Hammer.