Adidas is suing financially unstable publisher THQ for $10.6 million over an alleged breach of contract. OregonLive reports the sportsware company is seeking compensation for MiCoach 24/7, which THQ was expected to produce for Adidas in January.

According to the lawsuit, THQ informed Adidas in December that it would not be able to present the product and that developers who were working on the project had been laid off. Adidas is seeking $10.6 million in damages, also accusing THQ of refusing to turn publishing materials over to an alternative developer. Adidas is also seeking an injunction, preventing THQ from selling or transferring rights of MiCoach to another company.

THQ is currently in the midst of a massive "strategic realignment," having committed massive layoffs in the past few months and changing course away from kids games to save the cash-poor company.

This article was originally published on Joystiq.