In the latest development in the profit participation battle between plaintiffs Frank Darabont & CAA and defendant AMC, Judge Joel M. Cohen denied AMC’s motion for summary judgment, AMC’s last attempt to dismiss this matter before it goes to trial this Fall.
The litigation began in 2013, when Darabont and CAA sued AMC, claiming they were owed hundreds of millions in profits. The primary claims in the 2013 action relate to AMC’s self-dealing and artificial reduction of the license fees as well as AMC’s refusal to compensate Darabont with regard to spinoffs. A second lawsuit, filed in 2018 by Darabont and CAA, is based on Plaintiffs’ audit of AMC’s books and records. The audits uncovered tens of millions in damages resulting from AMC’s improper accounting, in addition to the original lawsuit’s damages.
Dale Kinsella, who is representing Frank Darabont and CAA, commented on Cohen’s decision to deny AMC’s motion:
“Plaintiffs are pleased that the court has soundly rejected AMC’s final effort to keep plaintiffs’ case from being heard by a jury…We look forward to the trial in November and the vindication of Mr. Darabont and CAA’s claims.”