‘Last Tango’ Licensor Sues MGM for $6 Million

MANHATTAN (CN) – Metro-Goldwyn-Mayer juggled the books to short the owner of “The Good, the Bad and the Ugly,” “For a Few Dollars More” and “Last Tango in Paris” more than $6 million, the company claims in court.
     P.E.A. Films sued MGM on Tuesday in Federal Court. P.E.A. is the successor to the Italian company PEA-Produzioni Europee Associate.
     P.E.A. seeks termination of licensing agreements, and money, claiming that MGM breached contract and used Hollywood accounting – or no accounting at all – to cheat it of millions of dollars.
     “Among those breaches were the failure to send to PEA honest and accurate statements together with timely payments for the periods in issue, and the assertion by MGM of more than $10,000,000 in unsupported fees and expenses, an assertion which on its face is a breach of MGM’s duty of the covenant of good faith and fair dealing,” the complaint states. “MGM knew, or certainly should have known, that an assertion of more than $10,000,000 in unsupported fees and expenses would be challenged by PEA. Upon information and belief, MGM purposefully made that assertion, knowing it would be challenged, to hinder and delay payment to PEA.”
     P.E.A. seeks an accounting, access to MGM’s records, an injunction, termination of agreements, and more than $6 million in damages for breach of contract and breach of faith.
     “MGM has failed and refused, and continues to fail and refuse, to provide documentation requested by PEA to support and justify a charge of $10,620,869 in home video expenses, thereby reducing the amount due to PEA by over $5,000,000,” the complaint states.
     MGM has failed and refused, and continues to fail and refuse, to provide documentation requested by PEA to support and justify a charge of $1,535,126 in administrative expenses.”
     P.E.A. is represented by Ronald Taft, with Wolff & Samson.

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