Moritz Borman sues Halcyon duo for fraud
Halcyon Co. banner, alleging fraud and breach of contract for not paying him producing fees. In the suit, filed Friday in Los Angeles Superior Court, Borman lists eight causes of action and seeks more than $160 million in damages. Borman alleged he had arranged for the transfer of the “Terminator” rights to Anderson and Kubicek but would not have done so had he known of the pair’s “shady” background or that the duo had been sued previously for “swindling” other motion picture investors. “Notwithstanding the fact that defendants obtained the substantial franchise rights and assets through Borman, Anderson and Kubicek failed to honor their assurances, representations and contractual obligations to Borman,” the suit said. “Defendants’ egregious fraud, bad faith conduct and refusal to abide by their contracts has led to the filing of this lawsuit.” Anderson and Kubicek were not immediately available for comment. The fourth “Terminator” pic, starring Christian Bale and directed by McG, is set for release on May 21. The duo founded the Halcyon Co. in 2006 with funding from Wall Street hedge funds and private investors. The company obtained rights to the “Terminator” franchise from Carolco’s Andrew Vajna and Mario Kassar for an undisclosed sum as that company was closing down in May 2007. Borman’s suit alleged that he had helped secure initial financing for “Terminator: Salvation” through investment fund Pacificor and that his deal called for approval rights on the picture and all creative decisions along with a $5 million producing fee and “significant” backend compensation. Borman alleges that Anderson and Kubicek “hijacked” the production last July as principal photography was being completed and refused to pay him the $2.5 million balance of his producing fee. “Soon after, it also came to light that Anderson and Kubicek did not have the means to finance the picture, had defaulted on numerous loans and owed over $1 million to creditors on the picture,” Borman said in the suit. Warner Bros. has rights to domestic theatrical and TV distribution on “Terminator: Salvation,” while Sony obtained international distrib rights to most territories. Jeffrey Silver, who’s not named in the complaint, also produced; “Terminator 3” scripters John D. Brancato and Michael Ferris wrote the screenplay. “Terminator: Salvation” is set in post-apocalyptic 2029 with an adult John Connor, played by Bale, leading a war to save humanity from killing machines.