This is the second lawsuit filed against Gaumont, the production company behind the Netflix series.
There could be a real crime behind Netflix’s “Narcos”.
Director and producer José Padilha (“Robocop”) has officially sued his producing partner Eric Newman over allegations that Newman is hiding millions of dollars in profits from the critically acclaimed series. Padilha alleged in the lawsuit that Newman conceals income from Gaumont Television, which violates their profit-sharing agreement.
Newman’s production company, Spahn Ranch, was supposed to share “Narcos” reports and receipts with Padilha’s production company, Cold Mountain. The contract states that “each party receives an equal amount of gross proceeds at all times”. However, Padilha alleges that Newman is hiding money because the contract is structured so that the amount paid to Newman by Gaumont is not transparent.
“Although he voluntarily accepted the trust placed in him by the plaintiffs, and in breach of that relationship of trust, Newman (both individually and on behalf of Spahn Ranch) caused Narcos’ earnings to be paid solely and directly to Defendants, without letting Plaintiffs know that such income from Narcos was received by Defendants,” reads the lawsuit filed in Los Angeles County Superior Court, via The Hollywood Reporter.
Padilha alleges that Newman received several million in undeclared earnings. The lawsuit refers to an audit of Gaumont by Newman on an unspecified date that was not counted in the profits paid to Padilha.
“Because they were partners, the plaintiffs relied on the defendants to be loyal, not to self-treat, not to take any action that would interfere with the plaintiffs’ right to receive their share of all revenue, revenue and proceeds from the operation of the series, and to timely, accurately and fully account for all revenue, revenue and proceeds generated and expenses incurred from the operation of the series,” reads the complaint.
Newman has since refused to turn over documents related to “Narcos” earnings, according to the suit. THR reported an anonymous source revealing that Padilha was in arbitration with Gaumont, who is not named as a defendant in this lawsuit.
TV executive Katie O’Connell Marsh also sued Gaumont in 2018 for breach of contract, alleging she didn’t see any money from her share of “Narcos” gross receipts in addition to Gaumont’s other shows. , including “Hannibal”, “Hemlock Grove” and “F is for Family”. A trial is due to begin in December.
“Narcos” previously featured Pedro Pascal and Diego Luna among its ensemble cast. French production company Gaumont is also behind ‘Lupin’ and ‘Barbarians’, and recently signed an overall deal with Paramount+.