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Judge Tosses Part of TMG’s Lawsuit Against Johnny Depp

A judge on Monday dismissed a portion of a lawsuit filed against Johnny Depp by his former management company, in which the company alleged that Depp’s lavish spending led him into financial trouble.

The Management Group (TMG) had countersued Depp in January, alleging that he had spent $75 million on 14 houses, $30,000 a month on wine, and $18 million on a 150-foot yacht. The suit — which came in response to a $25 million suit Depp filed earlier that month against TMG — also accused Depp of underpaying TMG, and sought a declaration that he was the author of his own financial ruin.

Judge Teresa Beaudet on Monday dismissed the portion of the countersuit pertaining to Depp’s spending habits, finding that a declaration on the issue would have no effect on each party’s responsibilities in the future.

“TMG’s action for declaratory relief seeks declarations placing culpability for Depp’s financial woes on him, and freeing TMG of any past wrongdoing,” the judge wrote. “No results or effects of such declarations on the parties’ responsibilities or duties are alleged. Accordingly, the demurrer as to TMG’s first cause of action is sustained.”

Depp’s attorneys had also sought to dismiss the portion of the lawsuit alleging that Depp had fraudulently induced TMG to do work without compensation.

“TMG has sufficiently alleged the elements of an action for promissory fraud with sufficient specificity, and the demurrer is overruled as to the sixth cause of action,” the judge wrote.

In a statement, TMG declared victory and vowed to re-file a complaint for declaratory relief.

“Today’s ruling was a clear victory for The Management Group because the Court ruled in favor of our fraud claim,” said attorney Michael Kump. “We intend to file an amended cross complaint for declaratory relief. All of the issues regarding Depp’s extravagant spending continue to be fully included in the case.”

Depp has sued TMG for $25 million, alleging that the company mishandled his finances. The allegations regarding Depp’s spending habits will continue to feature prominently in that litigation.

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