For the last month, profit participant lawsuits have been the talk of the town . In our practice litigating profit participation suits, we often encounter talent, talent lawyers, and other dealmakers who share some of the same misperceptions — and they are, in many ways,to the issues than the average observer. That got us thinking: What do most people get wrong about profit participation lawsuits? What follows are the top five misconceptions about these cases.
Before we jump to the list, we wouldn’t be lawyers if we didn’t offer at least a few caveats. First, while we handle a lot of these cases, and hear about others we don’t, we aren’t omniscient, and our opinions are precisely that: our opinions. Second, a word about the audience for this piece. If you read, you might learn something new. If you are an in-house lawyer in the participations group of a major studio, you might not, but hopefully you’ll be engaged.
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