Netflix is facing a $105 million lawsuit after a master copy of an unreleased Nicolas Cage thriller was allegedly stolen from the streaming company’s Hollywood offices. Swiss billionaire Simon Afram, who personally financed and produced the $45 million film “Fortitude,” is accusing Netflix of breach of contract after its digital cinema package disappeared nine days after being delivered. Netflix disputes that it’s financially chargeable for the loss and has accused Afram’s attorneys of engaging in “hostile attempts to extort money” from the corporate.
An unencrypted master copy of “Fortitude” was hand-delivered to Netflix’s Hollywood headquarters on June 15 on the streamer’s request. The transfer was reportedly a part of the movie’s ongoing sales process. Studios reviewing potential acquisitions commonly request a digital cinema package, or DCP, that might be projected inside a industrial theater.
Netflix executives screened “Fortitude” the next day. Nonetheless, Netflix Original Film director Sean Berney informed parties connected to the production on June 25 that the drive containing the film had been stolen, in keeping with an email included as an exhibit within the lawsuit.
“This can be a first for us. Unfortunately, someone stole an excellent amount of drives from our office desks this past week. We’ve been working through this with our security teams to no luck,” Berney wrote, per Page Six. “Our piracy teams are on high alert with the breach and can monitor, but they’re likely just selling the drives for scrap given they’d require a [key delivery message].”
Berney continued, “We are going to in fact create a brand new DCP or reimburse you for this missing drive. Apologies again and here to reply anything further and/or connect you with our security teams.”
A source at Netflix claimed the opposite missing drives were empty and didn’t contain additional projects. The grievance doesn’t make clear whether the stolen DCP was the one existing master copy of “Fortitude.”
Lawsuit Claims Netflix Waited To Disclose The Theft
Afram’s lawsuit alleges Netflix can have known in regards to the missing drive for so long as one week before informing the filmmakers.
“Netflix’s email indicated that Netflix had known in regards to the theft of the DCP for potentially a full week without ever advising plaintiffs that Netflix had allowed” Fortitude’s DCP “to be stolen right off a Netflix desk,” the grievance states.
The producer’s attorneys argue that Netflix’s proposed response didn’t account for the film’s production cost and potential market value. Making a alternative DCP would reportedly cost roughly $800, while Afram invested greater than $45 million into developing and producing the project over seven years.
The case was filed in federal court in California’s Central District. Afram is represented by Caroline Mankey and Christopher McAndrew of Akerman, together with Neville Johnson and Hyura Choi of Johnson and Johnson.
‘Fortitude’ Was Inspired By A Real-Life World War II Spy
“Fortitude” centers on Dusko Popov, a real-life World War II double agent and playboy who reportedly helped encourage Ian Fleming’s James Bond novels. At an earlier stage within the project’s development, Martin Scorsese was considering directing Simon Afram’s screenplay as a possible Leonardo DiCaprio vehicle. The ultimate version as an alternative reunited Cage with filmmaker Simon West, who previously directed him within the 1997 motion movie “Con Air.”
The movie also stars Ben Kingsley and Ron Perlman, with a supporting ensemble that features Matthew Goode, Michael Sheen, Art Malik, Jordi Mollà, Lukas Haas, Ed Skrein, Alice Eve, Paul Anderson and Emilio Sakraya. Court documents describe the film as “tonally within the vein of ‘Ocean’s Eleven’ meets ‘Inglorious Basterds.’”
“The resulting damage to Plaintiffs is profound,” the lawsuit states. “Through its mishandling of the Film and subsequent dismissiveness, Netflix has jeopardized Plaintiffs’ investment of over $45 million and the numerous value of the Film itself. Netflix has also deprived the Film, its solid, and its creators of the chance to bring their work to market and receive recognition that a properly marketed worldwide release likely would have generated.”
Netflix Denies It Bears The Risk Of Loss
Netflix pushed back against Afram’s allegations in a press release, arguing that the film was delivered without sufficient industry safeguards.
“Netflix disputes any claim that it bears the danger of loss for a movie delivered without the right industry-standard safeguards. While we don’t own the rights to ‘Fortitude,’ we take content security seriously and have taken extra measures to support the filmmaker and his team. This includes conducting a radical investigation and offering to observe known piracy sites for any unauthorized distribution or sale,” the streamer stated.
Netflix also addressed why it has not provided Afram’s legal team with details about its investigation. “We’ve got declined to share anything about our ongoing investigation with the law firm representing Simon Afram, given their hostile attempts to extort money from Netflix over this example, including immediately demanding $165 million for the film relatively than work with us in good faith,” the corporate added.
Although Afram is now searching for $105 million, Netflix claimed his attorneys initially demanded $165 million.
Producer Explains Film’s Alleged $112.5M Value
Afram’s attorneys based their damages calculation partly on what they consider the film could have earned through a properly handled worldwide release. In accordance with the grievance, the estimate considers early interest from studios and distributors, audience test scores, feedback from sales agents and the industrial potential of the genre.
The lawsuit claims “the film might be conservatively estimated to no less than break even, which within the movie industry translates to revenues of no less than 2.5 times the production budget, or $112,500,000.”
Afram also emphasized that his concern extends beyond recovering his personal investment. “I spent seven years of my life bringing this incredible true story to the screen. But this film was never mine alone. It belongs to the extraordinary solid and their performances of a lifetime that need to be seen and recognized. It represents the moment these artists have earned,” he said.
The lawsuit now leaves a federal court to find out whether Netflix might be held chargeable for the missing DCP and whether its disappearance caused the nine-figure damages Afram claims.