Could UBS Have Stopped a “Con” on Investors in a Bull Durham Musical?

Bull Durham Musical

[1] Have you ever heard a film producer or financier say, “I have access to half the financing”? It’s often followed by, “If you have the other half, we can do this.” I’ve heard this, many times. Words like these can be the start of a successful deal, or of a scheme to defraud. Take […]

The Walking Dead: Should AMC pay less than $2M Per Episode, or more than $20M?

Writer/director Frank Darabont is the creator of mega series The Walking Dead (the “Series”); talent agency Creative Artists is the Series’ packager; and AMC Studio is the producer and distributor of the Series, and licenses it for broadcast to the AMC Network [1]. Plaintiffs Darabont and CAA, who share in the profits of AMC Studio, claim […]

Did Relativity Media Run a $100M “Romance Scam” on a Film Investor?

RKA Film Financing has sued a group of film executives and financiers claiming that they schemed with much-hyped film distributor Relativity Media to pull off a $100 million-plus fraud. Putting movie industry context side, RKA’s fraud allegation, in key respects, looks like a classic “Romance Scam”, in which the scammer: **       posts great-looking photos ** […]

“Bones” Complaints: Did Fox Properly Account for Hulu monies?

Twentieth Century Fox produces the hit TV series Bones for its broadcast network and also makes the series available on Hulu of which it is a one-third owner. Did Fox properly report and share monies it received from its license of Bones to Hulu?  Two complaints recently filed by revenue participants claim it did not.[1] […]

Harlequin e-Books Royalty Case: A Dollar or a Dime?

In entertainment and media, sometimes business practices evolve more quickly than standard contracts. As recently as 2004, Harlequin Enterprises, the leading publisher of romance novels, did not specify a royalty rate for e-books in its author agreements.  Rather, e-book sales were lumped into an “other rights” category originally intended for book clubs and other activities […]

Crash Profits Restated; Court Responds with “Big Interest”

Can a film company issue a participation statement, then later revise and reissue it, making major changes in its favor? If the changes are decidedly wrong, can there be consequences? Profit definitions typically give film companies an express right to correct mistakes, even retroactively.  After all, mistakes get made. But on January 31, a California […]