Sylvester Stallone filed suit against Warner Bros. on April 13th, claiming the studio has fraudulently concealed his share of revenue from the 1993 sci-fi action film, “Demolition Man.” The film starred Stallone as a Los Angeles police officer who was cryogenically frozen in 1996 and later restored to life in 2032 to pursue a crime lord. The complaint was filed through Stallone’s loan-out company, Rogue Marble Productions, in Los Angeles Superior Court and alleges breach of contract, unfair business practices and accounting fraud claims. Stallone noted in his complaint that “[t]he motion picture studios are notoriously greedy,” pronouncing that these violations involve “outright and obviously intentional dishonesty perpetrated against an international iconic talent.”
Allegedly, Stallone contacted Warner Bros. in May 2014 inquiring as to why he hadn’t received profit participation statements for the movie. Apparently, Warner Bros. sent the actor a summary indicating that the film had not made a profit, but rather had a $66.9 million deficit, and therefore they didn’t owe the actor any money. According to the lawsuit, the film has earned at least $125 million in “defined gross.” The terms of Stallone’s 1992 contract with the film studio stated that if the film earned $125 million, Stallone was entitled to 15 percent of the film’s gross, and if the film earned $200 million or more, he was entitled to 20 percent.
After questioning the accuracy of the statements sent by Warner Bros., Stallone received a check for $2,820,356. The check came with no explanation or detail on how the figure was calculated. Stallone is now claiming that he is owed a more substantial payout and is asking for a “full accounting” and an explanation of “how this practice came to be, (plus) interest, damages and an end to this practice for all talent who expect to be paid by WB for the fruits of their labor.”
The lawsuit seeks disgorgement of contingent compensation wrongfully withheld and punitive damages against Warner Bros. “in an amount appropriate to punish or set an example of the defendants.” The case is Rogue Marble Productions Inc. v. Warner Bros. Entertainment Inc., case number BC657271.
