The amended complaint asserted claims for violations of the Fair Credit Reporting Act, defamation, and negligence, arising from a background check allegedly conducted by Spectrum in connection with the sale of Pride's assets in 2007 to Zuffa and the Fertittas.
According to the allegations in the complaint, "the parties [Dream Stage Entertainment, a Japanese corporation, and Pride FC Worldwide (formerly known as Dream Stage Entertainment and renamed after the acquisition] agreed in Section 5.3 of the APA that as a condition to any undertaking by Pride FC Worldwide to consult with Sakakibara, Sakakibara would have to submit to and pass any reasonably necessary background checks and drug tests typically conducted by Pride FC Worldwide or its affiliates."
Sakakibara alleged that "[i]n addition to the consulting provision in the APA, Sakakibara entered into a separate Consulting Agreement with Pride FC Worldwide. The term of the Consulting Agreement was from May 24, 2007 through May 24, 2011. Under the terms of the Consulting Agreement, Pride FC Worldwide was required to pay a 'Consulting Fee,' as defined in the Consulting Agreement. Pride FC Worldwide was required to make one immediate payment and then forty-eight (48) subsequent monthly payments (the "Monthly Consulting Fee") for the term of the Consulting Agreement."
Sakakibara alleged that as a result of an allegedly incomplete and erroneous background report by the defendants, Pride FC Worldwide allegedly withheld payment under the consulting agreement. Specifically, Sakakibara alleged as follows:
Based on the incomplete and erroneous information contained in the Spectrum Group, Gushin and NFC's consumer reports alleging that Sakakibara failed to cooperate with his background check, was connected to organized crime in Japan, was a person of unsuitable character, lacked ethical fitness and engaged in acts of moral turpitude, Pride FC Worldwide took an adverse action against Sakakibara by refusing to make the Monthly Consulting Fee payments.Defendants had filed a motion to dismiss the amended complaint that was pending before the Court -- and set to be argued on August 6, 2010 -- that was vacated as a result of the so-ordered stipulation of dismissal with prejudice.
Notably, the dispute between Zuffa and Dream Stage/Sakakibara was the subject of two separate lawsuits--one in federal court (since dismissed) and one in state court. The background of this dispute is set forth over at Fightopinion.com.
Fight Lawyer
