German company Intertainment has lost an arbitration in a case involving falsely inflated valuations for co-productions with Eli Samaha’s Franchise Entertainment. Intertainment won a $121.7 million judgment against Franchise in 2004 over wrongfully inflated budgets on movies that Intertainment co-financed. The inflated budgets resulted in Intertainment paying for almost all the costs on those movies instead of an agreed-upon split with Samaha. Intertainment subsequently sought $9 million in court costs from Comerica because the bank approved completion bonds for the amounts of the inflated budgets. The Independent Film and Television Alliance instead found that Intertainment owes Comerica the $9 million in court costs for which the bank was not held liable in the original case. Comerica issued a statement Wednesday: “We are pleased that the panel confirmed that Comerica acted ethically and appropriately in respect of the entertainment licensing matter. The panel found in Comerica’s favor on all claims, which fully vindicates our organization.”
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