Deadline
AMC‘s The Walking Dead is the biggest show on television but its developer Frank Darabont has yet to receive any money as a profit participant. Today, Darabont and his agency CAA filed a lawsuit (read it here) against AMC, accusing the network in “self dealing” by setting an unrealistically low license fee for the zombie series it also produces and employing questionable accounting practices thus depriving profit participants of compensation. The complaint also alleges Darabont was wrongfully terminated from the show, that he should continue to receive an executive producer credit and is entitled to proceeds from The Walking Dead offshoots Talking Dead and the upcoming spinoff from Robert Kirkman, on whose graphic novel The Walking Dead was based. UPDATE: AMC declined comment on the litigation. Darabont and CAA are asking for unspecified “monetary damages” to be determined by a jury trial.
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Hollywood has a very checkered history with accounting. I saw a story on how they often own the companies associated with it such as promotion and such so they can say well we spent 100 million etc. The reason is that since they own it, they did not spend anything close but are able to put down whatever they want and spread the cost out to other areas but use the on paper cost to justify not paying out.
Sony claimed the first Spider-man movie had not made money despite 400 million at the U.S. Box office, tons overseas, and record DVD sales. The judge quickly ordered Stan Lee to get 1 Million in profit sharing.
FOX twice sold re-run rights to The X-Files to their own FX station for far less than the going rate. Chris Carter sued and won, and yet the studio did it again when the first deal was up.