Netflix Sued Over Indie Movie Distribution Deal

(CN) – Netflix has been named in a lawsuit by a Chicago film company that claims it has not been fully paid on a distribution deal for a pair of movies, one starring Danny Glover.

In addition to Netflix, Reel Red Films sued Richard Wolff and his Breaking Glass Pictures for fraud and breach of contract in Cook County, Ill., Circuit Court.

According to the March 7 lawsuit, Reel Red and Breaking Glass signed deals in 2015 to acquire and distribute “Princess” and “About Scout.”

“Princess” is about a 12-year-old girl who wants to escape her abusive stepfather and meets “an ethereal boy who joins her on a dark journey between reality and fantasy,” according to Rotten Tomatoes.

“About Scout” is the story of a rebellious girl who takes a trip across Texas with a depressed young man to find her missing sister. In addition to Glover, Jane Seymour, Nikki Reed and Ellen Burstyn also appear in “About Scout.”

Reel Red claims Breaking Glass was obligated to reimburse $20,000 for each movie and to pay Reel Red 25 percent of the movies’ gross receipts.

The distribution company also alleges Breaking Glass struck a deal to air “About Scout” on Netflix without providing an accounting of the financial terms of that agreement.

Reel Red says Breaking Glass has only paid it $1,615 on the parties’ contracts. The lawsuit also states that Wolff represented to Reel Red that he had an “amazing reputation” in the film distribution industry.

“Defendant Richard Wolff knew the statements he made to plaintiff were false as Defendant Richard Wolf has a terrible reputation in the film distribution industry,” the complaint states.

The plaintiff also asked the court for a full accounting from Netflix relating to its deal with Breaking Glass regarding “About Scout.”

Reel Red seeks at least $50,000 in damages and a full accounting from Netflix relating to its deal with Breaking Glass for “About Scout.” The company is represented by Jeffrey Mashni of Wheeling, Ill.

Breaking Glass said in a statement that the parties “are currently in negotiations to resolve their differences” and the case has been put on hold for 30 days.

“Additionally, the claims are meritless and the Breaking Glass legal team is addressing it within the next 30 days,” the company said.

Netflix did not immediately respond Wednesday to an email request for comment.

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