Major Hollywood Producing Studio Warners Bros Faces Racketeering Lawsuit

Warner Bros and New Line Cinema, two major Hollywood production companies, face a racketeering lawsuit filed by a film producer over “The Conjuring” and its sequels.

Producer Tony DeRosa-Grund has been battling Warner Bros for the past year over a rights dispute in “The Conjuring,” and has now added racketeering charges to the lawsuit against the Hollywood giant, filed in Texas.

The racketeering charges claim that New Line Cinema LLC, a subsidiary of Warner Bros, and Craig Alexander, the production company’s senior VP and head of business and legal affairs, misrepresented the company’s intentions to a bankruptcy court when it purchased the rights to the life stories of paranormal investigators Ed and Lorraine Warren, who were the inspiration for “The Conjuring” and its sequels. Instead of retaining the rights, New Line Cinema transferred them to Warner Bros, which “assumed no obligations” to the financial agreements New Line Cinema made with the Warrens and DeRosa-Grund.

DeRosa-Grund claims that New Line and Alexander never stated that producers’ fees would be limited to one initial movie, and in fact the company included the term “sequels” in court-approved documentation, representing DeRosa-Grund as being attached to and paid for producing services in anything involving the Warrens’ story.

“At no point in time during negotiations did [New Line and Alexander] request that any other rights, besides theatrical motion picture rights, be granted to New Line Productions and, by automatic assignment, Warner Bros.,” the racketeering lawsuit states.

DeRosa-Grund cited “a pattern of racketeering activity” on the part of New Line Cinema, pointing to an ongoing legal dispute between Harvey Weinstein and the company over “The Hobbit” sequels.

“As a result of Defendants’ overt racketeering acts of mail and wire fraud, obstruction of justice and money laundering, Plaintiffs suffered and are continuing to suffer injury to their business and property including but not limited to, substantial loss of income, loss of benefits and loss of reputation,” reads the complaint.

The Strom Law Firm Can Help with Racketeering and Other RICO Charges

RICO charges involve the operation of an illegal business or enterprise, including a fraudulent scams, for an individual or entity’s personal profit. RICO cases are complex criminal cases.  They involve serious criminal charges and life altering potential consequences. The federal Racketeer Influenced and Corrupt Organizations Act (RICO) and similar state racketeering laws give the government a tremendous amount of power to go after those accused of racketeering.

The Federal Racketeer Influenced and Corrupt Organizations Act (RICO) and similar state racketeering laws give the government a tremendous amount of power to go after those accused of racketeering.

Being arrested or investigated for federal criminal charges can be very stressful. However, just because you are under a great deal of pressure does not mean that you are automatically guilty, or that you have no rights in court. For experienced RICO and federal criminal charges defense attorneys who will fight for your rights and work to have your charges reduced or even dismissed, contact the attorneys at the Strom Law Firm, today. We offer free, confidential consultations so that you can discuss the facts of your case with impunity, in a safe environment. Do not hesitate to contact us. 803.252.4800.