Paramount Slams Wall Street In Financing Lawsuit

Paramount Pictures claims that it was the victim of a fraud and conspiracy involving JP Morgan and it’s not going to take it anymore. “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,” says the cross complaint (read it here) filed Thursday in LA Superior Court in Santa Monica by the studio. “The cross-complaint seeks relief for a contrived attempt to frustrate Paramount’s rights and tarnish its reputation in relation to a series of film financing transactions, a Paramount spokesperson told me today.

Calling Content Partners as “the Hollywood equivalent of a patent troll,” the dense legal action this week comes in response to a $45 million breach of contract and fraud suit that the asset management group brought against Paramount in 2010 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. The 2010 case had been winding its way through the courts and the discovery process. It was scheduled to go to trial later this month but delayed because the judge retired. Now Paramount has fired back and set a whole new legal saga in motion. The jury trial seeking complaint filed Thursday claims intentional interference with contractual relations, fraud, misappropriation of trade secrets, unfair business practices and civil conspiracy. Though mentioned throughout the complaint as being deeply involved in the alleged fraud and other claims, J.P. Morgan are not actually named as a defendant in this week’s filing. (more…)

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