Ryan Kavanaugh's Relativity Media Sued for $44M
A lawsuit has been filed in L.A. Superior Court against the producer's West Hollywood studio.
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Ryan Kavanaugh, the media mogul behind Relativity Media, is facing yet another challenge.
Last year, residents in West Hollywood West, an area made up of almost 1,000 single-family homes north of Beverly Boulevard, complained of the pilot's noisy comings and goings atop the Sofitel. This year, it's a pretty hefty lawsuit from one of Relativity's original investors, Aramid Entertainment Fund.
Deadline broke news the Cayman Islands-incorporated investment company filed a 48-page complaint Wednesday in Los Angeles Superior Court. Registered by L.A. law firm Jeffer Mangels Butler & Mitchell LLP, the lawsuit allegations include breach of contract and fraud, among other complaints.
The suit's introduction states:
This is one of the greatest heist stories ever told in the movie business. It involves a stunning cast of corporate characters: one of the world's largest entertainment companies, the third largest bank in America, on the world's largest hedge funds, and a vehicle two of them helped bring to life in order to finance over $1 billion worth of feature films.
Variety reports plaintiffs Aramid Entertainment Fund Limited and Aramid Grantor Trust are seeking restitution and damages of at least $44 million.
Both allege that "Relativity grew too big too fast," that the company's "unprofitable acquisitions of Rogue Pictures and Overture Films led to a massive overhead its finances couldn't sustain," according to Variety.
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joninla
12:22 am on Thursday, February 9, 2012
As one of the biggest fans of Patch, I do not understand why this story was reported on in this way. The Headline leading with $44 Million Dollars and the subtext of "West Hollywood Studios".
This story has nothing to do with the "City of West Hollywood".
"West Hollywood Studios" is a fictitious corporate name. A corporate name is created intentionally to be distinct from any existing use of the words when put together, is registered with the Secretary of State's Office, and once approved, is the name of a business corporation that can be identified and named 'as a party' should a law suit need to be filed, which it seems to have been in this case.
Likewise, as a fan, I do not understand the way the headline grabbing piece is nothing more than the PLAINTIFF'S (the person wanting to cash in) starting with some outrageous sum that nobody thinks will ever be near a final settlement figure that will be made during the next 4-7 years.
Poorly written (unlike anything I've seen before) and I am guessing the Picture of the Person so prominent is using their financial influence over the Community Patch on the Defense's media blitz response to the silly opening statement that was actually copied and used as the 'news story' behind the headline.
WASTED EFFORT. NOBODY WHO READS WEST HOLLYWOOD PATCH HAS ANY CONNECTION TO THAT CORPORATE LAW SUIT.
John Pieplow
7:12 am on Thursday, February 9, 2012
I think this story is relevant to West Hollywood and well written. Relativity Media employs 200 full-time people and scores of part-time restaurant, hotel workers and related businesses in West Hollywood.
This lawsuit is also significant to the West Hollywood actors, writers, directors, producers and tech personnel who have worked on the many Relativity Media pictures produced over past years.
West Hollywood is first, and foremost, an “industry” town, and the potential loss of any film business, with the size and scope of Relativity Media, would be harmful to the city and it’s residents.
This is not a “frivolous” lawsuit. A similar action by a German investment group against West Hollywood’s Franchise Pictures several years resulted in the loss of many jobs and millions in lost revenue to West Hollywood.
joninla
7:36 am on Thursday, February 9, 2012
Not to be intentionally contrary, but I have never once heard of West Hollywood ever being an 'industry town', let alone the City's Being and Existence is the "First and Foremost" industry town.
Likewise, the context of the totally unknown participants and complete lack of information about the people, actions or dollar value relative to the corporations size/values and Kavenaugh's own personal net worth being around $900 Million Dollars - Juxtaposed with a reference to a noise incident a year ago.
My god he is the devil. The law suit is bad enough, but put that year old story about his filming crew not complying with their permit as to noise restrictions .... LOL
Finally - as for the regular kinds of stories Patch publishes, none have been about the various aspects of what you think is a city that's "first and foremost and industry town'.
Gay rights. Rent Control Raging Feuds Local Politics Senior complaints. Local clubs and a non-stop condemnation of the city over aesthetics and local community meetings about issues that are never able to decide on anything.
That's what this town is first and foremost known to be all about.
The only 'industry' that West Hollywood is known for is the manufacturing of complaints and unhappy residents who keep trying to get involved but can't.
Ali
3:12 pm on Thursday, February 9, 2012
Jon, the year old story had nothing to do with his filming crew. It was about Cavanaugh flying his personal helicopter and landing on top of the Sofitel, which was not permitted for personal landings, just so he could get to his studio faster than driving.
And what are you raving about "West Hollywood Studios" being a fictitious name. Nowhere does the story refer to that. The story says the suit is against the producer's West Hollywood studio, not "West Hollywood Studios".
Reading comprehension isn't your strongsuit, is it?
joninla
5:55 pm on Thursday, February 9, 2012
I think that was my point. It was a headline with a subtext that was not clear. The same story is posted exactly as this one, but no a one references west hollywood and none include studio.
The subtext says he is not personally being sued, his weho studio. They are a production company with an office in West Hollywood. They are not a 'studio' nor do they own, operate or have a filming studio in West Hollywood, or anywhere else.
As for my opinion about the absurd use of wording from an opening statement may seem totally foreign and unique to only the insane world in my crazy mind.
All of which could be true, except for the crazy assertion being unique. Here's the same story and almost all the comments say (admitadly with better grammar - but most haven't suffered a stroke, as I have).
http://www.deadline.com/2012/02/ryan-kavanaughs-relativity-media-sued-today-for-44m-one-of-the-greatest-heist-stories-ever-told-in-the-movie-business/
a world of crazy insane similar first impression reaction to the same story.