Avatar 2 Lands Disney In Hot Water With A Developing Lawsuit

Prior to filing its lawsuit, TSG hired an independent auditor to determine whether or not Disney owed unpaid profits. This audit looked at a sample size of three films, including Guillermo del Toro’s «The Shape of Water,» and determined that from these alone, TSG was entitled to an additional $54.5 million on top of shouldering $35 million in unnecessary charges. Encompassing the 100+ films TSG produced could raise this sum to somewhere in the hundreds of millions.

Also at the core of the lawsuit is an allegation that Disney attempted to devalue a deal between TSG and 20th Century Studios for the sake of increasing the successes of Disney+ and Hulu. Through 20th Century Studios releases landing on HBO, TSG earned a certain sum of money that suddenly dissipated when 20th Century Studios renegotiated its HBO deal, supposedly at the behest of Disney. TSG claims that this renegotiation lost them significant profits while increasing the value of Disney’s flagship streaming services.

Since TSG’s accusations are wide-ranging, it might be some time before this lawsuit resolves.