Producers of hit TV show “The Walking Dead” have filed a lawsuit against AMC Entertainment Holdings Inc (NYSE:AMC) for withholding a significant share of profits from the show.
The producers of “The Walking Dead” filed the lawsuit in against AMC in a Los Angeles Supreme Court. They accused the company of holding back a huge chunk of profits that would have otherwise been given to producers especially considering the success of the TV show and how long it has been on the air. The lawsuit reveals a strained relationship between the company executives and the producers of the show as it approaches its eighth season.
“These kinds of lawsuits are fairly common in entertainment, and they all have one thing in common — they follow success. Virtually every studio that has had a successful show has been the target of litigation like this, and ‘The Walking Dead’ has been the No. 1 show on television for five years in a row, so this is no surprise,” stated AMC.
The statement further pointed out that the company respects the producers and that it will continue working with them despite the lawsuit. AMC also revealed that it will defend itself vigorously. The company also described the lawsuit as baseless and opportunistic. A statement involving the legal battle also revealed that the new lawsuit also runs parallel with a similar case filed in California by Robert Kirkman, the author of “The Walking Dead” comic books.
Kirkman also happens to be one of the producers of the show. He also issued a joint statement together with other producers including Charles Eglee, Gale Anne Hurd, and David Alpert. They stated that they disagree with AMC as pointed out in the lawsuit, though they were happy about the company’s decision to continue working with them. The producers also added that they were still committed to making the best TV shows. The AMC network is also responsible for major hits such as “Breaking Bad,” and “Mad Men” among others.
AMC stock closed the latest trading session on Tuesday at $13.25 after tanking by 2.57 percent compared to the value of the stock during the previous close.
