Gearbox Software is notorious for delivering the Borderlands, one of the most popular multi-platform games last generation. However, the company has had its shares of lawsuits including securing the rights to Duke Nukem from 3D Realms and the misleading advertisements for Alien: Colonial Marines. Now the company’s CEO Randy Pitchford is under legal hot water with a chilling lawsuit that accuses Pitchford to taking $12 million and other disturbing acts.

First reported by Kotaku, the lawsuit was filed by Wade Callender, a former lawyer for Gearbox Software from 2010 until 2018. Gearbox sued Wade in November for not paying back the money he borrowed from Gearbox and abuse of the company credit card to pay for home loans, vacations, firearms accessories, gun club memberships, tuition, and “trying to get six-pack abs”. Wade has counter-sued Gearbox for some chilling accusations that have shocked many.

Callender has claimed that Randy Pitchford not only received a $12 million bonus from Take-Two Interactive, publisher of Borderlands, that was paid to Pitchford Entertainment Media Magic, LLC instead of paying Gearbox employees and funding development for Borderlands. But that’s not all.

Callender claims that Pitchford lost a USB drive in 2014 containing sensitive legal documents that “upon information and belief, Randy Pitchford’s USB drive also contained Randy Pitchford’s personal collection of ‘underage’ pornography”. He also says Randy has held parties where “adult men have reportedly exposed themselves to minors, to the amusement of Randy Pitchford.”

Gearbox is actively denying all of Wade Callender’s claims with the following statement:

“The allegations made by a disgruntled former employee are absurd, with no basis in reality or law. We look forward to addressing this meritless lawsuit in court and have no further comment at this time.”

Gearbox reached out to Kotaku to offer a response to this:

Gearbox will be filing a grievance with the State Bar of Texas against our former general counsel Wade for disciplinary proceedings for filing a lawsuit that includes accusations that he knows to be untrue. The lawyer’s rules of professional conduct expressly prohibit the filing of documents that are knowingly false. The tell is within Wade’s claim itself – his use of hedged lawyer language and clever application of quotation marks betray that he knows that the impression he is trying to create is based in lies. We imagine that he used the quotation marks and lawyer language in hopes that will give him some angles of defense when we inevitably take action against him for false statements. Wade is engaged in a shakedown and he’s clearly using deceit and lies to try to cause damage by promoting a narrative that he knows is false.

Gearbox’s Randy Pitchford took to Twitter as well to offer his own statement on the matter:

The attacks made by my former friend and colleague have no basis in reality or law. He is simply trying to shake me down for money. We will win, but because lawsuits are pending I can’t comment as much as I’d like. I am shocked by his lies. Thanks for your love and support.— Randy Pitchford (@DuvalMagic) January 11, 2019

As a father, I find crimes against children to be especially repugnant. It is very painful that a former friend and colleague would lie to try to associate me with such vile behavior in his own greedy pursuit of money.— Randy Pitchford (@DuvalMagic) January 11, 2019

There’s is clearly some legal foul play going around at Gearbox that may cause irrevisable damage to the developer and publisher. We’ll update the story as it goes on.