Lawsuit Films Made $7 Billion; Investors Earned $0
In the latest lawsuit to accuse a Hollywood studio of cooking the books, a group of investors is claiming that it invested $375 million in 29 Paramount films that together grossed nearly $7 billion but have yet to see a profit. The group, Melrose 2, accused the studio of "understating gross receipts, delaying payments to Melrose 2, overstating production and distribution costs and hindering Melrose 2's ability to...verify the revenues and costs associated with the films it funded." Paramount shot back that the lawsuit was "filled with hyperbole that ignores the true facts." A spokesperson insisted that the studio had "complied with its obligations to Melrose 2." Among the films that Melrose 2 helped back were Mission Impossible 3, Charlotte's Web, Dreamgirls, Flags of Our Fathers, Blades of Glory, Jackass 2 and the three Transformers movies.