03:27 PM EDT, 04/01/2024 (MT Newswires) -- Arena Group ( AREN ) and former Interim Chief Executive Manoj Bhargava have been sued over $48.8 million in missed payments by Sports Illustrated owner Authentic Brands Group, according to court documents Monday.

Authentic Brands alleged in the lawsuit filed in the US District Court for the Southern District of New York that Bhargava directed Arena Group ( AREN ), the then-publisher of Sports Illustrated, to miss its $3.8 million quarterly payment to Authentic in January.

Bhargava, who acquired a majority stake in Arena Group ( AREN ) in 2023, purportedly aimed to trigger the termination of Arena's licensing agreement and subsequent layoffs of Sports Illustrated staff, according to the court filing. Authentic Brands had the right to terminate the deal if a payment was missed, the filing said.

"Bhargava behaved more like a gangster than a trusted business partner," Authentic Brands said in the lawsuit.

Bhargava and Arena also owe Authentic Brands a $45 million licensing termination fee, the filing said.

The company asked the federal court to order Bhargava and Arena to pay the missed payments and damages for copyright and trademark infringements on the magazine.

Authentic Brands and Arena Group ( AREN ) did not immediately respond to MT Newswires' requests for comment, while Bhargava could not be reached for comment.

Arena shares dropped more than 16% in recent trading.

Price: 0.97, Change: -0.21, Percent Change: -16.10