Disney faces legal battle over allegations it robbed Hollywood movie financier

TSG Entertainment has helped fund a number of high-profile films, including Avatar: The Water Path. Credit: 20th Century Studios via AP.

The company has co-financed over 140 films produced by 20th Century Fox, which Disney acquired in its $71bn (£13bn) takeover of Rupert Murdoch's entertainment business in 2019.

It says. Over the past decade, the company has spent $3.3 billion on films such as Banshee of Inisherina, The Menu, Jojo Rabbit, The Grand Budapest Hotel, and Deadpool.

TSG recently requested an audit of three films in which she participates. funded after noticing a decline in its profits. The company claims to have uncovered «unbridled self-activity» and «accounting gimmicks» that showed it was underpaid $40 million.

The lawsuit argued: “In essence, this is a chilling example of how two Hollywood giants with a long and infamous history in Hollywood accounting, Defendants Fox and Disney, tried to use almost all the tricks of the Hollywood ledger to deprive the TSG plaintiff, a financier who had invested in good faith. they have more than $3.3 billion out of hundreds of millions of dollars.”

TSG said its audit also found that it was not credited with the income it was supposed to receive and was charged with dozens million dollars in distribution fees that were not part of its agreement.

Additionally, the financier said that Disney's renegotiated licensing agreement with Warner Bros Discovery in 2021 cut into its potential profits. The company also accused Disney of blocking its attempts to sell stakes in other films, which in turn prevented it from investing more in hits like Avatar: The Way of the Water.

TSG, founded by the Wall brothers -Straight. Chip and Robert Seelig have long-standing relationships with a number of Hollywood studios. He is represented by John Berlinski, the same attorney who represented Ms Johansson.