PEA Films, Inc., (PEA) which owns the rights to Hollywood classics “The Good, the Bad and The Ugly,” “For a Few Dollars More,” and “Last Tango in Paris,” filed a lawsuit in late August against Metro-Goldwyn-Meyerm Inc. (MGM) to terminate MGM’s contracts with the three iconic western films. According to PEA’s complaint listed in The Hollywood Reporter, PEA claims that MGM did not give PEA “honest and accurate accounting statements, showing revenue and expenses, together with timely payment of the amounts due to PEA.” In addition to the accounting statements PEA seeks damages in excess of $5 million.

PEA and MGM have had their disagreements before. In the 1990s, PEA sued MGM twice for underpaying PEA, and the parties eventually settled in both lawsuits. The settlements, however, did not end the issue. The parties continued to fight over audit reports in the 2000s, in which MGM delayed its payments to PEA. The Hollywood Reporter states that “PEA suspects MGM’s method of accounting is no accident, asserting the defendant is engaged in a ‘Hollywood accounting catch me if you can’ process designed intentionally to keep for itself money rightfully due to PEA.” It seems that PEA has finally drawn the line and seeks to cancel MGM’s contracts.

Ronald S. Taft and Howard J. Schwartz of Wolff & Samson PC represents PEA.

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Joseph Perry (@jperry325) is a 3L at St. John’s University whose goal is to become a publishing and media law attorney. He has interned at William Morris Endeavor, Rodale, Inc., Columbia University Press, and is currently interning at Hachette Book Group and volunteering at the Media Law Resource Center, which has given him insight into the legal aspects of the publishing and media industries.

Featured Image Courtesy of [Sean Davis via Flickr]

Joseph Perry

Joseph Perry is a graduate of St. John’s University School of Law whose goal is to become a publishing and media law attorney. He has interned at William Morris Endeavor, Rodale, Inc., Columbia University Press, and is currently interning at Hachette Book Group and volunteering at the Media Law Resource Center, which has given him insight into the legal aspects of the publishing and media industries. Contact Joe at staff@LawStreetMedia.com.

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