OAN’s James Meyers
1:45 PM – Wednesday, August 16, 2023
Hollywood film financier TSG is now suing the Disney company for allegedly cheating them out of millions of dollars.
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A suit was filed by the Avatar sequel financier at a Los Angeles Superior court on Tuesday. The lawsuit alleged that Disney withheld profits and cut deals to help boost its streaming platforms and stock price.
As a result, TSG was withheld from investing money into individual films and could not sell its stakes in other movies, according to the lawsuit.
The group has been involved in helping finance around 140 films produced by 20th Century Fox, which Disney acquired in 2019. TSG claimed since 2012 that they have invested $3.3 billion into various projects.
After noticing a decline in profits, TSG requested an audit of a sampling from three films that they financed for 20th Century Fox.
The finance partner claimed after finding various “accounting tricks” they were underpaid by Disney by over $40 million.
“At its root, it is a chilling example of how two Hollywood behemoths with a long and shameful history of Hollywood Accounting, Defendants Fox and Disney, have tried to use nearly every trick in the Hollywood Accounting playbook to deprive plaintiff TSG.”
Furthermore, the lawsuit claimed Disney’s 2021 deal with Warner Bros. Discovery directly cut into TSG’s potential profits.
Moreover, when the finance group used its rights to sell its stake in multiple films over the years, the notion was denied. TSG also stated that they were not able to invest in the recent movie sequel Avatar: The Way of Water, which made over $2 billion at the box office.
Robert Iger took over for a second time as CEO of Disney in November 2022, after Bob Chapek’s tenure resulted in the company losing millions in profits.
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By: OAN
