Judge Denies AMC’s Motion to Dismiss Executive Producers’ Lawsuit
Summary
– A federal judge has denied AMC’s motion to dismiss a lawsuit brought by “The Walking Dead” executive producers over profit participation disputes.
– The lawsuit, which follows a $200 million settlement with creator Frank Darabont, argues for a similar treatment under the “most favored nation” clause.
– Despite a previous ruling largely in AMC’s favor, the legal battle over profits from the original show and its spinoff “Fear the Walking Dead” persists.
“The Walking Dead” has been a juggernaut in the entertainment industry since its debut on AMC in 2010. While the main series concluded in 2022, the legal battles surrounding the show’s profits have unfolded. In the latest development, a federal judge has denied AMC’s attempt to dismiss a lawsuit filed by five of the show’s executive producers, signaling that the fight over profit participation is far from over.
The lawsuit centers on allegations from producers Robert Kirkman, Gale Anne Hurd, David Alpert, Glen Mazzara, and Charles Eglee that they were improperly denied their share of profits from the original series and its spinoff, “Fear the Walking Dead.” This legal challenge follows the high-profile settlement in 2021 where Frank Darabont, the show’s original creator, secured a $200 million settlement after his profit participation lawsuit.
At the heart of the current dispute is the “most favored nation” clause in the producers’ contracts, which they argue should entitle them to a better definition of “modified adjusted gross receipts” following the Darabont settlement. Their argument suggests they collectively owe at least $200 million, mirroring Darabont’s settlement figure.
AMC’s motion to dismiss this new lawsuit was denied by U.S. District Judge Fernando Aenlle-Rocha, who stated that the producers had sufficiently pleaded their case for a more favorable computation of their profits. This decision marks a significant step in the ongoing litigation saga, highlighting the complexity and high stakes of profit-sharing agreements within the television industry.
Through attorney Orin Snyder, AMC has labeled the producers’ efforts as a continuation of their attempts to “rewrite their contracts and extract money they are not owed,” vowing to continue fighting the claims. Meanwhile, the producers’ representative, Sheldon Eisenberg, emphasized the seriousness of the lawsuit and noted that an appeal regarding dismissing their original claims is still pending.
As the legal battle continues, it underscores the tension between creative contributors and broadcasters over the lucrative revenues generated by successful television series. The outcome of this lawsuit could have significant implications for how profit participation agreements are structured and negotiated in the future, setting precedents for both “The Walking Dead” franchise and the wider entertainment industry.
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