Disney Sued by ‘Avatar 2’ Partner

Avatar Screen Shot
Credit: Disney

As Florida Governor Ron DeSantis encourages Disney to drop its lawsuit with the State of Florida, the Walt Disney Company is being sued for breach of contract.

walt disney company building

Credit: Disney/Canva

RELATED: DeSantis Urges Disney to ‘Drop the Lawsuit’ and Move On

The TSG Entertainment Lawsuit

But this particular lawsuit has nothing to do with LGBTQ issues or Education bills. Hollywood financier TSG Entertainment is suing the company, claiming that it and Twentieth Century Fox withheld profits and cut deals to boost its streaming platform (Disney Plus) and stock price.

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Credit: Disney

The lawsuit was officially filed on Tuesday (August 15) in the Los Angeles Superior Court. It also alleges that the Walt Disney Company’s actions deprived TSG Entertainment of cash to invest in additional films and sell its stake in other movies.

RELATED: Indiana Jones and the Lawsuit of Lucasfilm

Revenue from Avatar: The Way of Water

TSG helped finance the production and marketing costs of multiple films by 20th Century Fox (which Disney now owns), including Avatar: The Way of Water (2022). In exchange for helping finance a film’s production and advertising, they receive a share of the revenue the film earns.

avatar the way of water

Credit: Disney

It is a similar to the claim made by Scarlett Johansson and her money from Black Widow (2021). TSG says that Disney is “self-dealing” to underpay TSG by a figure in the neighborhood of $40 million. Oddly enough, they are represented by the same law firm that represented Scarlett Johansson in the Black Widow suit.

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Credit: Marvel

RELATED: 81-Year-Old Grandfather Viciously Attacked by Disney Security Dog While Visiting the Parks: Lawsuit

“At its root, it is a chilling example of how two Hollywood behemoths with a long and shameful history of Hollywood Accounting, Defendants Fox and Disney, have tried to use nearly every trick in the Hollywood Accounting playbook to deprive Plaintiff TSG — the financier who, in good faith, invested more than $3.3 billion with them — out of hundreds of millions of dollars,” the lawsuit says.

About Steven Wilk

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