Credit to Poland gaming site CD Action for breaking the original news, but more details are found in a disclosure released by Optimus.
When THQ announced it had obtained the European publishing rights to The Witcher 2: Assassins of Kings for Xbox 360, that apparently surprised Namco Bandai, who had signed a distribution deal with developer CD Projekt Red for the European release of the PC version.
Atari will be publishing The Witcher II on Xbox 360 here in the US. Complicating matters, Atari Europe was acquired by Namco Bandai in 2009, gobbling up Atari's European distribution.
Namco Bandai is also arguing CD Projekt Red broke its contract with Namco Bandai by removing DRM from the PC version of the game without its permission.
Naturally, Optimus and CD Projekt Red believe both are in the clear.
"Namco's claims are unfounded," reads the statement.
As a consequence of the lawsuit, Namco Bandai is withholding payments of 1,225,000 Euros (roughly $1.75 million dollars).
"In the opinion of the [Optimus] management board, Namco consequently claim the desire to continue cooperation in the distribution [of] CDP RED products after the recent release of games released on PC, due to the expected potential sales of this title for console Xbox 360," concluded the company. (Also, I blame Google Translate for the awkward phrasing.)
Both the Soul Calibur publisher and THQ have not yet responded to requests for comment.
CD Projekt Red did not yet have any additional information about the lawsuit when contacted.