Beyonce Accused of Destroying Xmas for 70 People

A video game company called Gate Five filed papers today in NY -- in which they claim they had a deal in place in 2010 to create a game with Beyonce called, "Starpower: Beyonce."

According to the docs, things went awry during a "crucial moment in the project's development" when Beyonce made "an extortionate demand" for more money -- even though the two sides already had a deal in place.

Gate Five claims her move "drove 70 people into unemployment, the week before Christmas" ... and notes that one of the project's backers described her conduct as "morally reprehensible."

The company claims it is entitled to the $6.7 mil it invested into the venture -- as well as more than $100 million in profits Gate Five believes it would have earned had Beyonce honored the agreement.