Success Stories

Client was the loan out corporation for a major Hollywood writer/director. The client was entitled to specified contingent compensation based upon the financial success of two different films. One of the films, a classic, was subsequently remade. While the client had a contingent compensation interest in the third (sequel) film, the terms were less favorable than the terms relative to the original film. The sequel ended up as a box office failure. Consequently, the studio packaged the squeal with the original film onto a special DVD in the hope of generating increased home video sales. However, for the purpose of calculating the client’s contingent compensation on the two films, i.e., the original and sequel, the defendant studio unilaterally allocated more of the DVD’s revenue to the sequel than to the original. The net effect of the studio’s allocation was to deprive the client of the full value its contingent compensation interest in the original film. Upon completing a forensic audit of the studio’s books and ledgers related to all three films, the parties were able to resolve this and other accounting claims related to all three films.