Court tosses suit vs. ‘Anne’ heirs

Action claimed IPO ruined by making payment dispute public

TORONTO — A Toronto court threw out a C$55 million ($42.2 million) defamation suit Monday filed against the heirs of “Anne of Green Gables” author Lucy Maude Montgomery.

The suit was filed in 1999 by Kevin Sullivan of Sullivan Entertainment, the Toronto-based producer of hit TV miniseries “Anne of Green Gables” and various spinoffs.

Sullivan claimed the family ruined the company’s plans for an initial public offering by making public a dispute over royalty payments.

In an acrimonious trial that wrapped in November, the defendants said that beyond initial payments, the company failed to pay the agreed 10% net profits and “stonewalled” efforts to look at its books. Sullivan maintained that “Anne” failed to generate any profits or royalties.

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