Success Stories

Client was the successor-in-interest to a very successful Hollywood producer. Pursuant to the terms of the producer’s original employment agreement, he was entitled to 5% of a film’s net profits. The film became a huge financial success, but the defendant, a major Hollywood studio, refused to acknowledge the film’s success or the client’s right to share in its net profits. Under the threat of very public litigation and in the face of clear documentary evidence to the contrary, the defendant studio finally acknowledged the client’s participation rights. However, since the producer’s employment agreement was signed before the advent of home video, e.g., DVD, the studio claimed that client’s 5% interest should be calculated, in part, on only 20% of the film’s gross home video revenue versus 100% of the revenue. The defendant studio claimed this accounting method was now “industry custom” and should govern the parties’ relationship despite no mention of home video revenue in the parties’ original agreement. The firm vigorously opposed the defendant studio’s “net profit” calculation, and upon completing a forensic audit of the studio’s books and ledgers, was able to settle the matter.