Prospect Park CEO Jeff Kwatinetz Sues Company and Investment Firm ABRY Partners

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Prospect Park chief Jeff Kwatinetz is suing the production company he co-founded as well as investor ABRY Partners, seeking to have a non-compete clause in his contract ruled invalid.

Kwatiznetz formed Prospect Park in 2008 with former Walt Disney Studios president Rich Frank. In December 2012, three funds controlled by private-equity firm ABRY invested in the company, as part of Prospect Park’s efforts to resurrect ABC soaps “All My Children” and “One Life to Live” as online series.

Kwatinetz claims his new employment contract under the terms of the ABRY investments included an “unenforceable non-competition and non-solicitation provision.” That lets Prospect Park force Kwatinetz to work for the company for at least five years — for no compensation — and stipulates a $5 million “damages penalty” if the executive violates the non-compete terms, according to the lawsuit.

SEE ALSO: ABC Accused of Scheming to Create ‘Mega-Soap’ in Lawsuit by Producer

It’s unclear whether Kwatinetz is seeking to exit Prospect Park or mainly looking for leverage in negotiations with ABRY through the lawsuit.

The suit is the latest legal drama for Prospect Park, which is seeking at least $95 million in damages from ABC. Prospect Park claims the Alphabet net breached the terms of its agreement for the rights to produce new episodes of “All My Children” and “One Life to Live” by killing off certain “OLTL” characters and conspiring to merge that show with ABC’s “General Hospital.” Prospect Park’s production of the soaps is suspended pending that lawsuit’s outcome.

Kwatinetz filed the lawsuit Nov. 21 in the Superior Court of California for the County of California. The suit was first reported by Deadline.com.

A rep for Prospect Park declined to comment. ABRY Partners did not respond to a request for comment.

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  1. Chris Everard says:

    I hope they nail ABC to the wall. ABC wouldn’t let them advertise on ABC, wouldn’t let actors appear on key ABC shows to promote the soaps, killed off key characters, signed key actors to strict contracts, even locked down the web address for AMC. ABC knew what it was doing and thought they had outsmarted PP. They are going to pay, we just don’t know how much.

  2. Prospect Park has turned out to be money grubbing crybabies, it is time to stop blaming ABC! The halting of AMC/OLTL production, pending the long and drawn out ABC lawsuit, is what is killing our soaps. By the time that settles they are not going to have cast or an audience… just money.

  3. charcramer says:

    Prospect Park and Jeff Kwatinetz are bad news. The shows belong back on ABC.

  4. Megan says:

    At this point, I don’t even know what to say. It’s an utter shame Disney gave Prospect Park an extension for their licensing rights on AMC & OLTL. ABC was already looking into ways to bring the shows back(especially OLTL). I honestly couldn’t care less who Jeff or PP sue. They’re clearly suing everyone on the face of the Earth with the hopes making a quick buck and justifying their excuses for failing miserably. All I can hope & pray for is that the ABC/PP lawsuit is resolved ASAP and that ABC gets the rights to the shows back ASAP.

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