Investor sues producer of 'Ghostbusters' sequel for unpaid loans
2023 LITGDBRF 0015
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By Zak Boerger
WESTLAW TODAY Litigation Briefing
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March 6, 2023
(March 6, 2023) - A Canadian film producer is refusing to repay more than $13 million in loans to an investor for seven films, including 2021's "Ghostbusters: Afterlife," according to a suit filed in Miami federal court.
Robert Scot Building Venture LLC and an affiliate say Creative Wealth Media Finance Corp. and its principal, Jason Cloth, breached the contracts for loans made between 2019 and 2021 for seven films and a TV series, according to their complaint, filed Feb. 23 in the U.S. District Court for the Southern District of Florida.
Further, the defendants are liable for fraud for manipulating RSBV into investing by making materially false statements about the productions and the repayment schedules, the suit says.
No repayments in 'Afterlife'
Beginning in 2019, RSBV says, it entered into a series of agreements to loan about $13.5 million to Creative Wealth to produce the films "Ghostbusters: Afterlife," "Monkey Man," "Gossamer," "Hailey and the Hero Heart," "Bubbles Hotel," "Young Bear Grylls" and "Fables," as well as the TV show "Pathway."
The loans all had maturation dates in 2021 and 2022 and interest rates around 10% for most of the productions.
The final loan was for "Pathway," at 15% interest, which Cloth said had been greenlighted for five seasons despite knowing it had only been approved for one, the suit alleges.
When the investment firm demanded payment, Cloth refused and threatened that RSBV "would never get paid back" if a suit were filed, according to the complaint.