Sylvester Stallone Sues Warner Bros. Over Accounting of Profits for 1993 Film Demolition

Action star Sylvester Stallone is suing Warner Bros. over “bad accounting practices” for the 1993 film Demolition Man. The film features Stallone taking on his nemesis. The movie star is now taking on the film studio over the company’s accounting of the profits.

Rogue Marble, the actor’s loan-out company, filed a suit against Warner Bros. on Wednesday night for contract and fraud claims.

The complaint, lodged in Los Angeles Superior Court, alleges that the film studio’s participation statement doesn’t provide a clear picture of the movie’s revenue. The lawsuit is asking for full accounting for the film that made $58 million at its release.

Stallone has worked with the film studio since the 1993 film recently distributing Creed, a 2015 movie, through the studio. The actor states that it’s time to do something to help the creative community and tackle the problem of “Hollywood Accounting.”

The complaint calls the movie studios “notoriously greedy.”

The actor’s contract entitles him to a cut of the movie’s gross profits after it reaches the $125 million threshold. The actor’s percentage, as per the contract, according to the complaint, would rise to 17.5% when the film earned $200 million and 20% if the film surpasses the $250 million threshold.

Stallone states that the movie grossed at least $125 million, entitling the actor to a minimum of 15% of the profits.

The claim states that Stallone didn’t receive a profit participation statement between 1997 and 2014 until his agent reached out to the movie study. The response given in January 2015 states that there was no payment due because of an alleged deficit.

The complaint states that the actor then received a check for $2.8 million along with a one-page statement after Stallone’s representatives questioned the studio’s first statement. Rogue Marble’s complaint against the company alleges that the actor is owed additional money under the actor’s contract.

Warner Bros. initially claimed the movie lost $66.9 million prior to sending the actor a second statement and a check.

Stallone will try to show that the movie studio knowingly misrepresented the facts to commit fraud. He is also seeking compensation for the contractual breach in the fraud claim.

The lawsuit claims that both sides have been arguing over money from the movie for three years. Rogue Marble will be represented by the Johnson & Johnson Law Firm. The movie grossed $58.1 million in the U.S. and Canada and was released in additional markets overseas. The movie has also been shown on TV and cable, and was released on video.