https://rollingstone.com.br/noticia/produtora-de-crossroads-processa-sony-apos-aumento-na-popularidade-do-filme-com-britney-spears/

https://rollingstone.com.br/noticia/produtora-de-crossroads-processa-sony-apos-aumento-na-popularidade-do-filme-com-britney-spears/

Ann Carli, who produced Crossroads, claims Sony Music Entertainment owes her 22 years of unpaid net profits from the 2002 film

Ann Carliwho produced the debut film of Britney Spears, Crossroads: Friends ForeverI didn’t know that the 2002 film was so loved by the public. In a new lawsuit filed in New York Supreme Courtshe states that she only realized this when the Sony Music Entertainment announced that the film would return to theaters in 2023 — and with this news came the realization that she had not received 22 years of net profits due from the production.

Carli sued Sony Music for breach of contract and fraud. It seeks at least $36 million in damages, in addition to payment of attorneys’ fees and legal costs. The action also includes a formal request for accountability. The lawyers of Carli and representatives of Sony Music Entertainment did not immediately respond to the company’s request for comment. Rolling Stone.

According to the process obtained by the magazine, Carlioperating through its production company Fuzzy Bunny Inc.signed a production contract in 2001 with Filmco Enterprisesthe company responsible for the film. Under the agreement, Carli received US$300,000 as a producer fee and would be entitled to 10% of the net profits from Crossroads. The document states that the film was an “original creation” by Carlinoting that she “conceived the concept of the feature specifically as a vehicle starring the pop star Britney Spears.”

Written by Shonda Rhimes and directed by Tamra Davis, Crossroads was produced with a budget of US$11 million — although the Filmco approved $12 million, according to the lawsuit. The film was released in February 2002, grossing US$14.5 million in its opening weekend. At the end of its run, it had grossed US$37.5 million in the United States and Canada, in addition to more than US$61.1 million worldwide. Revenue increased further from DVD and VHS sales, TV licensing and merchandising, which, according to the lawsuit, “were significant in the early 2000s given the peak popularity of Britney Spears.”

With the advancement of streaming and digital consumption, however, Crossroads it was inaccessible for years. The film reached Netflix in February 2024, 22 years after launch, thanks to a licensing agreement between Sony Music and the platform. In 2002, Filmco was acquired by BMGwhich later merged with Sony Musicmaking the Sony owner of the rights and obligations relating to Crossroads from 2008.

During this period, according to the document, Carli “justifiably relied on the good faith of the Sony Music (or its predecessors) and believed that it was not entitled to net profits (and therefore to financial statements).” When Crossroads was re-released in cinemas, in 2023, to coincide with the release of the autobiography of Spears, The Woman in Me, Carli asked for access to these statements, as he had not received any for over 20 years and “it seemed doubtful that the Sony Music re-release a film that hadn’t made a profit (or worse, made a loss).”

In response to the question, according to the process, Dan Zuckerthen executive vice president of commercial affairs at Sony Musicstated: “It appears that accounting obligations may have been lost in the transition to BMG and then to Sony.” This would leave 22 years of financial statements unrecorded.

Around the time of the relaunch, the Sony Music allegedly provided the Carli a statement of net profits claiming that Crossroads had had a loss of US$49.7 million. “Sony stated that Crossroadsdespite its evident success, not only did it not generate a net profit, it was also running a deficit of nearly $50 million,” the lawsuit says. Yet, Carli discovered that Shonda Rhimeswho was entitled to 5% of the film’s net profits, had received enough for “a down payment on a house in the hills of Hollywood.” Other profit participants received more than $3 million, according to the complaint, which also notes that Carli was excluded from the profits arising from the agreement with the Netflix.

“Defendant’s fraudulent behavior was intentional, reckless and malicious, warranting punitive damages sufficient to punish Defendant and deter similar conduct in the entertainment industry,” the complaint states.

Source: Rollingstone

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