EXCLUSIVE: Inside Kevin Spacey's Latest Legal Nightmare After He Wept Over Narrowly Avoiding Bankruptcy and Homelessness
Kevin Spacey faced a new legal battle after breaking down over avoiding bankruptcy.
Aug. 31 2025, Published 3:00 p.m. ET
Kevin Spacey is facing fresh legal peril in the United States, where a $150 million insurance dispute linked to his firing from House of Cards threatens to unravel a fragile financial settlement and push him back to the brink of bankruptcy, RadarOnline.com can reveal.
The 64-year-old actor, who was ousted from the hit Netflix drama in 2017 after sexual misconduct allegations, is now embroiled in a complex case in which insurers are seeking to have a lawsuit dismissed on the grounds that Spacey and the show's producers are advancing contradictory claims.
Spacey's Deal
Insurers seek to dismiss a lawsuit tied to Spacey's firing from 'House of Cards.'
Spacey struck a deal with production company MRC last year to pay just $1 million of a $31 million judgment after they successfully sued him for breaching contract.
In return, he agreed to support MRC in a fresh action against the show's insurers, with the company arguing production losses stemmed not from misconduct but from Spacey's "compulsive sexual behavior disorder."
Spacey supported MRC in a legal fight against the show’s insurers.
But insurers say the position directly conflicts with the earlier lawsuit. In a filing last month they accused MRC and Spacey of "judicial estoppel" – the term for pursuing two opposing accounts of the same events.
"In MRC v Spacey, MRC claimed and proved the damages were caused by his acts in seasons one through five," the motion reads.
"Now, it has reversed course and claims the loss was caused solely by Spacey's unavailability during season six. Only one of these positions can be true."
A legal source familiar with the case said: "This is dangerous territory for Spacey. If the insurers succeed in getting it dismissed, MRC could come after him for more money. He managed to escape paying the full $31m once, but that protection may not last."
Questions About Spacey's Health
A London jury cleared Spacey of nine sexual assault charges last year.
The dispute has also raised questions about Spacey's health at the time of his downfall.
Documents filed by MRC describe him as suffering from compulsive sexual behavior disorder and receiving treatment at The Meadows clinic in Arizona.
Yet at the time his lawyers insisted he was well enough to work. Attorney Bryan Freedman wrote in November 2017: "Mr Spacey has no known illness that has not been disclosed."
Another lawyer, Jeffrey L Shulman, stated plainly: "To be clear, Mr Spacey is not incapacitated."
Netflix boss Ted Sarandos has been dragged into the matter, resisting attempts to force him to testify.
Court filings cite reports that Spacey checked into treatment the same day CNN published accounts from crew members describing his alleged predatory behavior.
Spacey's Denial
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Spacey revealed he nearly went bankrupt and lost his Baltimore home.
The actor has consistently denied wrongdoing and has been acquitted or cleared in every criminal case.
A London jury last year found him not guilty of nine charges of sexual assault, while a New York jury in 2022 rejected his alleged victim Anthony Rapp's civil claim against Spacey.
Even so, the financial impact has been devastating. In April, Spacey broke down in tears on Piers Morgan Uncensored as he revealed he was losing his Baltimore home to foreclosure and had "no money."
He told Morgan: "I'm not quite sure where I'm going to live now."
Pressed on whether he faced bankruptcy, he admitted: "It's been a couple of times when I thought I was going to file, but we've managed to sort of dodge it, at least as of today."
