Paramount Settles Financing Lawsuit

Nothing says Happy Holidays like wrapping up a festering lawsuit before the end of the year. After three long legal years, Paramount and asset management firm Content Partners have ended their film-financing court battle. “The matter has been amicably resolved and each of the Parties has denied any wrongdoing,” a Paramount spokesperson said today in a parsed statement. On Tuesday, Content Partners lawyers filed paperwork in LA Superior Court’s Santa Monica courthouse for dismissal of the case with prejudice on all actions by all parties involved. The resolution comes less than a week before a scheduled motion for summary judgment hearing. No details of what the settlement entails, but with tens of millions of dollars being bandied about in various complaints and counter-complaints, everybody likely got something for Christmas.

This all started in 2010 when Paramount was slapped with a $45 million breach of contract and fraud suit by Content Partners over profit participation on films such as Face/Off and The Truman Show. Content Partners claimed that the studio played fast and loose with paying out money it owed. As that case weaved its way through the courts and the discovery process, Paramount shot back this summer. “Paramount Pictures Corporation brings this Cross-Complaint against Content Partners LLC and its affiliate seeking redress for a years-long scheme by Content Partners and Wall Street investment bank JPMorgan Chase Bank, N.A. to defraud Paramount through an unlawful and secret assignment of rights in connection with 25 Paramount motion pictures,” said its cross complaint of June 6. On September 23, Paramount beat back Content’s moves to kneecap its counterclaims based on the statute of limitations. The studio was also given the opportunity by the presiding judge to add JPMorgan as a defendant in its complaint. With this week’s agreement, that won’t be happening as the battle is over.

Paramount is represented by Richard Kendell, Robert Klieger, Philip Kelly and Randall Jackson of LA firm Kendall Brill & Klienger. Marty Singer of Lavely & Singer represents Content Partners.