Disney, Film Financing Partner TSG Settle Lawsuit Over “Hollywood Accounting”
deadline.comDisney and TSG Entertainment Finance have settled litigation from August of 2023 when the financier sued the media giant for “rampant self-dealing” and breach of the parties’ revenue participation contract. “The matter has been resolved,” said a Disney spokesperson.
TSG said it has financed more than 140 films to the tune of $3.3 billion over the years with Fox, whichDisney acquired in 2019, including Avatar: The Way of Water, Bohemian Rhapsody, Deadpool, Deadpool 2, X-Men: Days of Future Past, Logan, Dawn of the Planet of the Apes, The Martian, The Grand Budapest Hotel, JoJo Rabbit, The Banshees of Inisherin, Hidden Figures, The Shape of Water and Empire of Light.
TSG’s lawsuit filed last August in Los Angeles District Court said that Fox had promised TSG a share of defined gross receipts for pictures under the companies’ long-term participation agreement but that studio used “nearly every trick in the Hollywood accounting book” to not pay.
The financier accused Disney/Fox of self-dealing with FX, Hulu and Disney+, said it’s revenue began to shrink and that an audit it commissioned showed breaches of contract.
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