Federal Judge Fernando Aenlle-Rocha denied AMC’s motion to dismiss a lawsuit filed by “The Walking Dead” producers Robert Kirkman and Gale Anne Hurd. The lawsuit alleges discrepancies in profit sharing between AMC and the producers.
It would be illogical to interpret the MFN provisions in a way that allows Defendants to provide greater compensation to Darabont and CAA through a settlement agreement without offering the same benefit to Plaintiffs. Such an interpretation would be contrary to the parties’ expectations when entering into the agreements.
The Darabont and CAA case was settled three years ago, resulting in a $200 million settlement for the ex-showrunner and management agency with AMC.
Plaintiffs are entitled to similar treatment as Darabont regarding his MAGR interests. This includes the same valuation applied to their MAGR interests, which collectively exceed Darabont’s and CAA’s. Consequently, Plaintiffs are entitled to a substantial payment from AMC, exceeding $200 million, the exact amount to be determined at trial.
In 2022, Kirkman, Hurd, Alpert, Eglee, and Mazzara initiated legal action against AMC, accusing the company of withholding substantial payments.
Despite claiming billions in profit from The Walking Dead franchise thanks to Plaintiffs’ ideas and services, AMC initially issued a MAGR definition that would have denied them any profit participation. Not surprisingly, AMC’s definition sparked conflicts with The Walking Dead’s creative talent, leading to legal action.
AMC’s decision regarding settlement will determine whether the lawsuit proceeds to trial.