tinyBuild (AIM:TBLD), the video games publisher and developer, filed a lawsuit against Max Ent Games, formerly known as Merge Games, in the United States District Court for the Western District of Washington on 11 August.
The dispute concerns unpaid royalties owed to tinyBuild relating to the game Smalland.
tinyBuild alleges the total amount due exceeds $1.9m, before interest and legal costs.
Max has acknowledged that royalties are owed but disputes tinyBuild's method of calculating the sum.
The company said further announcements will follow as the lawsuit progresses through the courts.
News Intelligence what this means for the company
tinyBuild is pursuing Max Ent Games for $1.9m+ in unpaid royalties from the game Smalland in US federal court. Max acknowledges royalties are owed but disputes the calculation method, meaning the core liability is not in question—only the amount. The dispute is material relative to tinyBuild's recent revenue trajectory: revenue for the first five months of 2026 is tracking ahead of expectations, but a $1.9m+ claim represents a meaningful cash recovery if successful.
The lawsuit does not materially alter tinyBuild's operational outlook—Max Ent Games' acknowledgment of the debt obligation suggests collection risk is lower than a full denial would imply. However, the outcome and timing of recovery remain uncertain, and legal costs will erode any net gain. This is a cash-flow event, not a business fundamentals event.
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