[ad_1]
The long legal battle over Frank Darabont’s profits The walking dead ended, with AMC Networks making a nine-figure payment to the former showrunner and his agency, CAA.
Darabont first sued in 2013, and the battle eventually resulted in a fallout in 2018. He and CAA claim the network used shady accounting to bypass profits. The bout extensively examined the negotiation behind AMC’s coup and focused on how to calculate its bottom line.
While other hit shows from AMC like Mad Men and breaking Bad were produced by other studios, Walking Dead was the first series produced and distributed by AMC. This dispute has therefore served as a test case on profit sharing and vertical integration, an issue increasingly relevant as self-distributed content becomes prevalent in the streaming world.
The original judge seemed to favor Darabont and CAA. In fact, AMC fired its original lawyers in Kasowitz and replaced them with Gibson Dunn. The new team were able to avoid a loss of summary judgment and were ready to go to court over how Darabont was represented in the negotiation of the original contract by sophisticated lawyers and agents, and were simply trying to use the litigation to renegotiate. a better deal.
In April, an appeals court ruled on Darabont’s case, but the key question of how the contract should be interpreted was due to go to a jury in April 2022.
The settlement resolves all disputes and redeems Darabont and CAA of most of their intellectual property rights in the franchise.
“The Settlement Agreement provides for a cash payment of $ 200 million (the ‘Settlement Payment’) to the plaintiffs and a sharing of future revenues related to certain future streams of The walking dead and Fear the living deadAMC’s July 16 report to the US Securities and Exchange Commission said. “The Company assumed a charge of approximately $ 143 million during the quarter ended June 30, 2021 in consideration for the extinguishment of the claimants’ rights to any compensation in connection with The walking dead and all related programs and the dismissal of the prejudicial actions, the amount of which is net of approximately $ 57 million of interests accrued in the ordinary course of business. The settlement agreement also includes customary provisions included in such agreements, including mutual release clauses, covenants not to prosecute, waivers, confidentiality, non-denigration, and indemnification of third party claims.
Neither party comments beyond filing with the SEC.
The parallel struggle of other participants for profit, including Walking Dead graphic novel creator Robert Kirkman, is underway and currently slated for trial in November, with a June save date set in the event of a pandemic delay. AMC’s lawyers say the Darabont settlement does not affect this litigation.
[ad_2]
Source link