In the latest in an increasingly bizarre series of legal disputes, The Ant Commandos is being sued by shareholders who own 50 percent of the company. According to the suit, the plaintiffs are seeking to have the courts dissolve the peripheral manufacturer entirely, forcing it to cease operations and managing the sale of its assets.

　　The Ant Commandos' recent run of court battles began last August, when Guitar Hero publishers Activision and RedOctane claimed its line of guitar controllers infringed on their trademarks. The Ant Commandos filed a countersuit against the two companies, claiming that the original Guitar Hero controller actually ripped off from a Magical Guitar peripheral made by Ant Commandos part-owner Topway Electrical Appliance in 1999.

　　The companies eventually settled that dispute, but it wouldn't be the last time they found themselves on opposite sides of a courtroom. Earlier this year, Activision named The Ant Commandos, former employees of RedOctane, and former RedOctane PR representatives Reverb Inc. in a lawsuit alleging that the defendants had been planning to start up their own competing company, and had even created a demo to shop around for fund raising purposes on Activision's dime. That case is scheduled to go to trial later this year.

　　In the latest suit, filed last month in the US District Court, Central District of California, Topway and Diana Yu--two shareholders who collectively own 50 percent of The Ant Commandos--claim the company and the owners of the other 50 percent of its stock--director of marketing Raymond Yow and president Hong Lip Yow--are guilty of unlawful business practices, breach of fiduciary duty, fraud, and an array of other charges.

　　According to the suit, Topway and Yu allege that the defendants sold products made by Topway competitors, withheld more than $500,000 in payments due to Topway, and inappropriately denied them access to its financial records. They also claim that Lip Yow misappropriated Ant Commando funds to purchase or lease luxury automobiles, and that the Yows dipped into the company kitty to pay for their personal attorney's fees.

　　In addition, the plaintiffs allege that the Yows started companies that would compete with The Ant Commandos and Topway. An attorney for Topway did not say if that charge was related to the suit in which Activision alleged that The Ant Commandos intended to establish a new development house with ex-RedOctane employees.

　　Furthermore, Topway and Yu claim that when they contacted the Ant Commandos' board of directors about these claims and asked them to file suit against the Yows, the board violated its fiduciary duties to the shareholders by refusing to pursue the complaint. The Yows' alleged improprieties, mismanagement, and fraud have cost The Ant Commandos and its shareholders more than $4 million, according to Topway and Yu.

　　Topway and Yu are also attempting to have The Ant Commandos business involuntarily dissolved. Under California law, when internal dissension between factions of shareholders results in a deadlock such that the business can no longer continue operating in the interests of the shareholders, the courts can intervene. The business is then sold under court supervision as a whole or in parts, with the proceeds going to creditors, shareholders, and others with a claim against the company.

　　As of press time, a representative with The Ant Commandos had not responded to GameSpot's request for comment.