Game Insight hit with $2 million lawsuit from its bankrupt Russian subsidiary
Game Insight’s scandalous exit from the Russian market has taken a new turn, as the Lithuanian mobile publisher has just been hit with a lawsuit in Moscow.
- Russian developer “Гейм инсайт”, local division of Vilnius-based company Game Insight, filed a lawsuit with the Moscow Arbitration Court, local state-owned news agency TASS reported on February 22.
- The developer is seeking 154.3 million rubles ($2.05 million) from its Lithuanian parent company.
- However, the case has yet to be accepted for proceeding, and the reasons for filing the lawsuit remain undisclosed.
Game Insight ceased its operations in Russia last year, starting the liquidation of its local entity soon after. This resulted in mass layoffs, with hundreds of people left without a salary or severance pay. Bankruptcy administrator Denis Kachura later compared the behavior of the Lithuianian leadership to “homegrown scammers,” detailing the shady side of the liquidation process.
Game Insight’s legal entity in Russia was officially declared bankrupt in November, with a total debt of more than 142 million rubles ($1.89 million). Unfulfilled obligations to creditors amounted to 76.2 million rubles, while wages and severance pay arrears amounted to 66.5 million rubles.
There also were reports that some executives may face criminal charges for non-payment of salaries and other obligations. Kachura, the bankruptcy administrator in the Game Insight case, recently said that he plans to bring a “wide range of persons controlling the company” to vicarious liability.
The list of these people includes Russian-born entrepreneur Igor Matsanyuk, who has been the chairman of Game Insight since 2010 and controlled both the Russian and Lithuanian divisions. He is also the former vice president of Russian tech giant Mail.ru Group (now known as VK).
Other persons who control Game Insight, according to Kachura, are Gregory Finger and Michael Vinchel, best known as the co-founders of Mail.ru Group.
