Film investor Hudson Private LP is reportedly suing Bron Studios for allegedly misappropriating funds and not repaying the millions of dollars due to them from film loans borrowed for four movies between 2017 and 2020.
According to the lawsuit, Hudson claims that Bron owes more than $14 million plus interest for its expenses on four films – Bombshell, Capone, The Survivor, and Greyhound. The lawsuit also names both Creative Wealth Media and Jason Cloth, Creative Wealth Media’s CEO and founder, as defendants in the case.
Hudson claims in the suit that Cloth made “various knowingly false representations” to Hudson Private LP to lock in the $14 million worth of investments.
Examples of these “knowingly false representations” include the arrangement that the borrowed funds would only be used for the production and the delivery of the four films, and that Bron Studios could reinforce the $14 million in loans and guarantee complete repayment.
Rather than use the investment money to produce and deliver the films, Hudson alleges that $3 million of the funds set aside for the 2020 film Greyhound was utilized for other things.
Hudson also alleges in the lawsuit that Bron failed to pay back borrowed funds, such as $4 million for the 2019 film Bombshell, $1.5 million for Greyhound, $3.3 million for the 2020 film Capone, and $5.4 million for the 2021 film The Survivor.
Bron also allegedly failed to provide proper and accurate accounting for the four films and where the borrowed funds went.
“Despite Cloth showing Hudson LP purported documentation of approximately $11.6 million in foreign sales on the Capone motion picture to induce Hudson LP’s investment,” the lawsuit states, “This collateral was subsequently destroyed, to Hudson LP’s detriment, because Capone was scheduled to be a theatrical release, but Bron instead released the film via PVOD (video on demand) in May 2020, and no reporting on sales has been provided to Hudson LP.”
Hudson Private LP’s lawsuit is asking for the $14.3 million they claim is owed to them after loaning Bron Studios the money. Hudson also wants the interest owed to them for the money they loaned, as well as attorneys’ fees and costs for the lawsuit and potential case going to court.