Investor Sues Bron Studios Alleging Default On $14M In Film Loans For ‘Bombshell’, ‘The Survivor’, ‘Capone,’ ‘Greyhound’
Here’s another film lawsuit — and it’s not about Covid insurance. Film investor Hudson Private LP Is taking Bron Studios to court, accusing it of misappropriating funds and failing to repay millions due on film loans dispersed between 2017 and 2020.
Hudson alleged in the suit filed in U.S, District Court in the Southern District of New York federal court Wednesday that Bron owes it at least $14.3 million plus interest for its outlay on four films, Bombshell, Capone, The Survivor and Greyhound. It also names Creative Wealth Media, a Toronto-based firm that is Bron’s main financier, and Creative Wealth’s founder and CEO, Jason Cloth, as defendants. Hudson says Cloth made “various knowingly false representations” to Hudson to secures the investments, including that the funds would be entirely used for production and delivery of the films and that Bron could “back-stop” the loans and guarantee repayment.
Instead, Hudson alleges, $3 million earmarked for the Sony film Greyhound was never passed to Sony but used for other purposes. And it says Bron has defaulted on payments due to the tune of just over $4 million for Fox film Bombshell; $1.5 million for Greyhound; $3.3 million from Tom Hardy-starrer Capone; and $5.4 million for The Survivor, the Barry Levinson film recently sold to HBO. It also said Bron failed to provide an accurate accounting for the films.
And in an echo of current battles, it said that, “despite Cloth showing Hudson LP purported documentation of approximately $11.6 million in foreign sales on the “Capone” motion picture to induce Hudson LP’s investment, this collateral was subsequently destroyed, to Hudson LP’s detriment, because “Capone” was scheduled to be a theatrical release, but Bron instead released the film via PVOD (video on demand) in May 2020, and no reporting on sales has been provided to Hudson LP.”
It’s asking for at least the $14.3 million plus interest with attorneys’ fees and costs.
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