Paradox Interactive has filed a lawsuit against SouthPeak claiming they are owed upwards of a half-million dollars for games sold as part of a non-exclusive distribution deal, reports Gamasutra, saying SouthPeak's reported "insolvency" is alleged to be at the root of the missed payments. They quote the legal filings: "SouthPeak has failed to comply with its payment obligations even for game units which it previously reported to Paradox, and SouthPeak's executives have informed Paradox's executives that SouthPeak is currently financially unable to satisfy its payment obligations to Paradox under the Agreement." Paradox claims that SouthPeak reacted to termination of their agreement in February by stating they would seek the return of unsold inventory from retailers, of which Paradox says: "There is no rational business reason for requesting such returns; it is contrary to the provisions in the Agreement for post-termination handling of product." They are seeking an injunction against the return of any goods, claiming they would be "irreparably harmed" by such a move. SouthPeak was also sued late last year by TimeGate Studios over missed royalty payments.