The Los Angeles city attorney is alleging the makers of the "Grand Theft Auto: San Andreas" video game hid pornography inside it.
The lawsuit also accuses Rockstar Games and parent company Take-Two Interactive of making misleading statements and engaging in unfair competition.
The video game includes a secret "mini game" in which characters can engage in explicit sex. City attorney Rocky Delgadillo says the industry board that rates video games gave it a mature rating but would have given it an adults-only rating if it knew of the explicit content. The game's rating was later changed and some big retailers pulled it from shelves.
The game makers haven't commented yet on the lawsuit.