A lawsuit between Robert Kirkman, Gale Anne Hurd, producers of The Walking Dead, and AMC is being allowed to move forward. In a ruling Monday, federal judge Fernando Aenlle-Rocha denied AMC’s motion to dismiss the lawsuit, one that alleges inaccurate profit sharing between the network and the producers behind the series.
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“It would be an illogical interpretation of the MFN (most favored nations) provisions and contrary to the reasonable expectations of the parties in entering into the agreements if the court were to allow Defendants, as a matter of law, to provide Darabont and CAA with increased contingent compensation and a greater share of future gross receipts for the series through a settlement agreementโat Plaintiffs’ expenseโwithout providing Plaintiffs the same,” Aenlle-Rocha wrote in his decision.
The Darabont and CAA case noted was settled three years ago, with the ex-showrunner and management agency receiving $200 million in a settlement with AMC.
“Plaintiffs are entitled to the same treatment afforded to Darabont with respect to his MAGR interests, they are therefore entitled to have the same valuation applied to their MAGR interests, which, collectively, exceed Darabont’s and CAA’s,” Aenlle-Rocha added. “As a result, Plaintiffs are entitled to a payment well over $200 million from AMC, in an amount to be proved at trial.”
Kirkman, Hurd, David Alpert, Charles Eglee, and Glenn Mazzara filed suit in 2022 alleging AMC was withholding sizable payments from the group.
“Even though AMC exploited Plaintiffs’ ideas and services to make billions fromย The Walking Deadย franchise, AMC issued a MAGR definition that, in its original form, would not have paid out a single dollar in profit participation to Plaintiffs,” the initial suit read (viaย Deadline). “Unsurprisingly, AMC’s MAGR definition has spurred a storm of disputes with the creative talent onย The Walking Deadย that ultimately resulted in litigation.”
Unless AMC also chooses to settle this lawsuit, it is now clear to proceed to trial.