Michael Moore Sues Weinsteins Over ‘Fahrenheit 9/11’

In Film Law by FASHIONENTLAW™

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THR, Esq. reports a  lawsuit that has just been filed by Michael Moore.

“Filmmaker Michael Moore has sued Harvey and Bob Weinstein, accusing the brothers of “Hollywood accounting tricks” and “financial deception” that cheated him out of at least $2.7 million in profits from the hit documentary Fahrenheit 9/11.

In a lawsuit filed today in Los Angeles Superior Court, Moore says the Weinsteins and an affiliated entity called the Fellowship Adventure Group agreed to split profits from the film 50-50 but then diverted monies to hide them from Moore.

The suit for breach of contract, breach of fiduciary duty and constructive fraud claims that in 2008 Moore conducted an audit of the 2004 film, which grossed $222 million worldwide, and “discovered substantial irregularities in the accounting” that resulted in a “gross underpayment to [Moore],” the lawsuit says.

Those irregularities include an alleged secret deduction of $2.5 million in revenue that the Weinstiens claimed was paid to acquire an interest owned in the film by a predecessor company called Icon Entertainment International; a 7.5% “override” fee on advertising costs in the amount of $1.2 million, “despite the fact that [the Weinsteins] did not incur the advertising costs and the [deal] did not permit [them] to deduct these costs”; as well as additional improper deductions of fees paid to distribution consultants, accountants, residuals, foreign taxes and travel expenses, including what Moore says are the “grossly excessive and unreasonable” costs of hiring a private jet to carry a single passenger to Europe. . . ” ~THR,Esq. has the full story.

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