Investor sues Bron Studios for $ 14.3 million owed on four films – deadline
Here’s another film lawsuit – and it’s not Covid insurance. Film investor Hudson Private LP is suing Bron Studios, accusing it of embezzling funds and failing to repay the millions owed on film loans scattered between 2017 and 2020.
Hudson alleged in the New York Southern District District court lawsuit on Wednesday that Bron owed him at least $ 14.3 million plus interest for his spending on four films, Bombshell, Capone, The Boy Who Lived and Doggy style. He also names Creative Wealth Media, a Toronto-based company that is Bron’s principal financier, and Creative Wealth founder and CEO Jason Cloth, as defendants. Hudson says Cloth made “various knowingly false statements” to Hudson to guarantee the investments, including that the funds would be fully used for the production and delivery of the films and that Bron could “support” the loans and guarantee repayment.
Instead, Hudson alleges $ 3million is earmarked for Sony film Doggy style was never passed on to Sony but used for other purposes. And he says Bron defaulted on just over $ 4 million for the Fox movie. Bomb; $ 1.5 million for Doggy style; $ 3.3 million from Tom Hardy-starrer Capone; and $ 5.4 million for The survivor, the Barry Levinson film recently sold to HBO. He also said that Bron did not provide accurate accounting for the films.
And in an echo of the current battles, he said that, “despite Cloth showing Hudson LP alleged documentation of around $ 11.6 million in overseas sales on the film ‘Capone’ to entice the investment from Hudson LP, that collateral was later destroyed, to the detriment of Hudson LP, as “Capone” was slated to be a theatrical release, but Bron instead released the film via PVOD (video on demand) in May 2020, and no sales report was only provided to Hudson LP.
He’s asking for at least $ 14.3 million plus interest along with legal fees and costs.