Suits Over Video Game Deal Settled, Perceptronics Reports

Perceptronics announced Monday that it has settled its lawsuits with Simutron Inc. by paying the San Diego-area video-game company an undisclosed sum. The Woodland Hills-based company also said that it settled a separate suit against Fireman’s Fund insurance for not defending Perceptronics against a Simutron countersuit.

In a statement, Gershon Weltman, chairman and chief executive of Perceptronics, said that the Fireman’s Fund and Simutron settlements offset each other, and so will have “no material impact” on the company’s earnings.

But, Weltman said, the settlements will enable Perceptronics to remove the qualifications that appeared on its financial statements over the past three years as a result of the litigation.

The suits between Perceptronics and Simutron, filed in 1983 in Los Angeles Superior Court, result from a 1981 contract under which Perceptronics was to develop an electronic game for Simutron. A dispute arose over the scope, timing and cost of the work.

Perceptronics accused Simutron of breach of contract and fraud for failing to pay for work performed beyond the terms of the contract. Simutron countersued, saying Perceptronics never developed the game to its satisfaction.

Simutron officials could not be reached Monday for comment.

Perceptronics makes video games used as training equipment for the military. Its primary business since opening 16 years ago, however, has been defense-related research.