Warner Borthers have supposedly breached a contract agreement with Threshold Entertainment over a reported third Mortal Kombat film which is in development.

Threshold Entertainment Inc. filed the action Tuesday in Los Angeles, claiming Warners had shut it out of production of the martial arts movie, in which it owns a licensing interest.

In the early 1990s, Threshold had entered into a partnership with arcade-game developer Midway to develop "Mortal Kombat" into a variety of media, including two feature films.

Guugley via thewrap.com »