SEOUL, South Korea, Dec. 29, 2009 (GLOBE NEWSWIRE) -- Gravity Co., Ltd. (Nasdaq:GRVY) ("Gravity" or "Company"), an online game developer and publisher based in South Korea, today announced that the litigation between YNK Korea Inc. ("YNK Korea"), a Korean online game developer and publisher, and the Company has been completed.
In May 2006, YNK Korea, our former investor for Ragnarok Online, filed a lawsuit against us claiming that we failed to distribute the earnings from a certain amount of net sales due to the embezzlement of royalty revenue committed by our former chairman and from license fees from overseas licensees. The claim of the lawsuit amounted to KRW 1,895 million and in December 2007, Gravity paid KRW 623 million to YNK Korea upon the first trial decision in November 2007. The case was transferred to Seoul High Court in January 2008 and the Court gave a decision that YNK Korea repay KRW 35 million and interests to Gravity out of KRW 623 million, which was paid by Gravity, in December 2009. In addition, no party has filed an appeal during the appeal period.
After the recent settlement with Softstar Entertainment Inc. and the completion of litigation with YNK Korea, Gravity is not involved in any lawsuit that will have a material adverse effect on our business.
About Gravity Co., Ltd.
Based in Korea, Gravity is a developer and publisher of online games. Gravity's principal product, Ragnarok Online(TM), is a popular online game in many markets, including Japan, Taiwan and Thailand, and is currently commercially offered in 57 markets. For more information about Gravity, please visit http://www.gravity.co.kr.
Forward-Looking Statements:
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