Adidas suing THQ for failing to produce exercise game

More trouble is mounting for THQ. The embattled publisher is now the subject of a lawsuit from sportswear company Adidas. The company claims THQ is in breach of contract for failing to produce a promised piece of coaching software called "miCoach 24/7."

The suit was filed in the Multnomah County Circuit Court, based near Adidas America in Portland Oregon. Oregon Live reports that Adidas announced the miCoach line to compete with products like the Nike+ and Garmin sport watches, and entered a deal to have THQ release the miCoach 24/7 product by January of this year.

THQ told Adidas it wouldn't be able to complete the game in December, amid layoffs that impacted the miCoach team. Adidas is seeking $10.6 million in damages, including an injunction that THQ not sell or transfer the rights to the miCoach game.

This is yet another problem mounting for THQ, after disappointing sales have led to layoffs and the threat of stock delisting. THQ had counted on the uDraw to be a hit, but it fizzled. THQ has since shaved off most of its kids and licensed properties, and is pushing into the core space alongside mobile and social games.