Gearbox CEO Pitchford accused of receiving $12 million “secret bonus”

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Gearbox CEO Randy Pitchford has been accused of receiving a “secret” $12 million bonus in a lawsuit brought by the Borderlands developer’s former lawyer Wade Callender.

Callender’s lawsuit is a counter to an earlier action brought by Gearbox against Callender. In it, Callender makes some very lurid accusations, including that Pitchford “rerouted” $12 million in Borderlands royalties from Gearbox’s publisher Take-2 Interactive to his Pitchford Entertainment, Media & Magic company, and that Pitchford and his wife “Syphoned Gearbox profits” to host “Peacock Parties” in which: “Adult men have reportedly exposed themselves to minors, to the amusement of Randy Pitchford.”

The original lawsuit brought by Gearbox against Callender in November 2018, alleges that Callender failed to repay a $300,000 loan from Gearbox, various other loans and payments and that he abused his company credit card for personal expenses.

Pitchford said on Twitter: “The attacks made by my former friend and colleague have no basis in reality or law. He is simply trying to shake me down for money. We will win, but because lawsuits are pending I can’t comment as much as I’d like. I am shocked by his lies.”

In a statement, Gearbox said: “Gearbox will be filing a grievance with the State Bar of Texas against our former general counsel Wade for disciplinary proceedings for filing a lawsuit that includes accusations that he knows to be untrue. The lawyer’s rules of professional conduct expressly prohibit the filing of documents that are knowingly false.”

Pitchford and Callender have known each other since the 1980s, and Callender joined Gearbox in 2011 as the company’s General Counsel. No doubt proceedings will get even more heated if or when the court cases get under way. To keep abreast of the latest Gearbox news, head to its website.