Hasbro said Atari may have violated its licensing agreement when it sold its European business distribution arm to Japanese game maker Namco Bandi in July according to CNBC. Hasbro is also alleging Atari misled it about the deal.
Greg Leeds, president of Wizards of the Coast the Hasbro subsidiary that owns Dungeons & Dragons, said: "We have been working for several months now to reach resolution with Atari, and they have left us with no other choice than to pursue legal action."
Atari said it had not violated the agreement or misled Hasbro and said in a statement: "Hasbro has resorted to these meritless allegations, in an apparent attempt to unfairly take back rights granted to Atari.
"Atari has sought to resolve the matter without cooperation from Hasbro. We regret that our longtime partner has decided to pursue this action."
Hasbro is seeking damages for economic losses and wants to end the licensing agreement, in the complaint filed in the District Court of Rhode Island.
Atari said it will respond appropriately through its legal counsel in court. The firm has held digital game rights for Dungeons & Dragons since 2000,