AMC is seeking the $200 million dollar profits lawsuit from Robert Kirkman (Invincible), the creator of The Walking Dead, Gale Anne Hurd (Armageddon), and many other executive producers to be D.O.A, according to Deadline. The lawsuit is attempted by the same individuals to have the modified adjusted gross receipts (MAGR) definition which they claim to have been accorded by the original The Walking Dead showrunner, Frank Darabont. The MAGR defines that the revenues a studio receives from, Films, or television or Streaming series does not count for distribution fees, expenses, and development and production cost. Kirkman and company on November 14th filed a breach of contract against AMC suing them for $200 million. The lawsuit was shifted over to the federal court in December because of jurisdictional issues.
According to Deadline, after AMC was sued back in 2013 and many years of legal battles commenced they suddenly all ended in July 2021. As the New York trial loomed over them AMC decided to settle the issue by offering a $200 million cash payment along with future revenue sharing related to future streaming exhibitions.
Deadline states, “Having lost resoundingly in state court on different theories, Plaintiffs are at it again, now asking this Court to hand them multimillion-dollar windfall through a new argument that finds no support in the plain language or purpose of the contractual provision on which Plaintiffs rely”. The James Dolan-led company declared a motion to dismiss a memorandum that was filed last week in federal court.
AMC’s Gibson, Dunn & Crutcher LLP attorneys stated, “Because the Darabont Settlement did not involve the creation of a more favorable MAGR definition—or of any MAGR definition at all—the MFNs in Plaintiffs’ contracts were not triggered, and Plaintiffs’ claims should be dismissed. An unambiguous contractual provision must be given its plain meaning’’.
“Under the plain and unambiguous terms of Plaintiffs’ contracts, the MFNs are only triggered if another profit participant receives a more ‘favorable’ MAGR definition’ than Plaintiffs. Because the Darabont settlement does not create a more favorable definition of MAGR, Plaintiffs’ claims fail as a matter of law”, stated by the motion to dismiss memo.
It has still to be seen if Judge Aenlle- Rocha will put this matter to the side or have it put to trial. As of now AMC’s request for a hearing to dismiss the trial has been set for Mar 10, 2023 along with a March 17 conference scheduled.