In an unexpected development, True Games Interactive has decided to file a lawsuit against developer Petroglyph, the maker of True Games' upcoming multiplayer action-RPG Mytheon. The game entered open beta testing late in April but now True Games claims Petroglyph is refusing to fix bugs in the beta version and is holding "the source codes hostage ... making it impossible for TGI to complete Mytheon."

True Games' lawsuit, filed on May 4 and first reported by Courthouse News, claims that Petroglyph made "repeated, unreasonable demands . . . for additional funds and concessions" for developing Mytheon. True Games claims those actions as well as holding back the source code for the game, "poisoned the working relationship between TGI and Petroglyph, such that the entire multi-million dollar venture is in danger of collapsing." True Games accuses Petroglyph of breaching its contract and is asking for punitive damages and an an injunction to get Mytheon's source code. Big Download emailed Petroglyph for comment but so far we have not received a response.

[Via Massively]