×
You will be redirected back to your article in seconds

Relativity Lender’s $110 Million Lawsuit Dismissed

A judge dismissed a $110 million lawsuit on Thursday from a lender who claimed it was duped into pumping money into Relativity Media while it was heading toward bankruptcy.

RKA Film Financing filed suit in 2015, alleging that Relativity CEO Ryan Kavanaugh was a “con man” who had run his company like a Ponzi scheme. The suit claimed that Kavanaugh, as well as his officers and directors, had misappropriated money that was intended solely for P&A expenses, and used it instead to fund the company’s general operations.

In his ruling, New York Supreme Court Judge Charles E. Ramos found that RKA had failed to state its fraud claims with sufficient specificity. In particular, Ramos wrote that RKA had not identified anyone to whom fraudulent claims had been made.

Ramos also tossed a claim for negligent misrepresentation, finding that RKA and Relativity were both sophisticated parties with an arm’s-length relationship.

“Arm’s length transactions are ‘not of a confidential or fiduciary nature,’ and therefore do not create a duty for one party to impart correct information on another,” the judge wrote.

In a statement, a Relativity spokesman said the case had “absolutely no merit whatsoever.”

“It is very comforting to see the legal system work in a fair and equitable manner,” the spokesman said. “This is a perfect example of how media hype can spin molehills into mountains. … The press has had a field day with this lawsuit, and wrote lengthy and harsh articles which implied that Ryan Kavanaugh was somehow involved in the various nasty and vicious claims asserted by RKA. The press spun what amounted to nothing more than false words filed in the form of a complaint — something any person can do for a small court fee — into false claims that have no merit.”

More Biz

  • Plume of black smoke rising from

    Attorney for Universal Music Artists Impacted by 2008 Fire Requests Inventory

    Following on its statements last week that it will be filing a lawsuit on behalf of several Universal Music recording artists impacted by a 2008 fire that destroyed a huge number of master recordings, a Los Angeles law firm has requested a “complete inventory” from the company. Addressed to UMG CEO and chairman Lucian Grainge, [...]

  • Charles Caldas To Step Down as

    Charles Caldas To Step Down as Merlin CEO

    Charles Caldas, the only CEO that the independent-label collective Merlin has ever known, announced today that he will step down from his post at the end of 2019, after more than 12 years at the helm of the global rights organization. He will continue his current duties until then and work with the Merlin board to [...]

  • Merlin Reports Record Distributions for 2019

    Merlin Reports Record Distributions for 2019

    Global indie-label collective Merlin reported record distributions in its 2019 membership report, paying $845 million to label and distributor members between April 2018 and March of this year. That figure, a 63% year-over-year increase, includes more than $130 million paid out this year from non-royalty income — and included in that figure is the estimated [...]

  • Dwyane Wade on Supporting His Son

    NBA Star Dwyane Wade on Supporting His Son's Attendance at Miami Pride

    NBA star Dwyane Wade spoke to Variety about why it was important for him to support his younger son attending a pride parade last spring. In April, Wade’s then 11-year-old son Zion posted pictures of himself at Miami Pride, with his siblings and stepmother Gabrielle Union. Wade, who was on the road with the Miami [...]

  • Songs for Screens Powered by Mac

    Songs for Screens: How Eric Church Teamed With Ram Trucks — and Five Tons of Vinyl — for ‘Solid’ Campaign

    Country star Eric Church has long used his new music to reward his loyal fans, from surprise releasing 2015’s “Mr. Misunderstood” album as a direct fan-club exclusive to impromptu meet-and-greets before his hometown show in Greensboro, North Carolina. So when Church was prepping the April vinyl release of 2018’s critically acclaimed “Desperate Man,” the singer [...]

  • Harvey Weinstein legal team

    Harvey Weinstein Loses Another Defense Lawyer

    Harvey Weinstein has lost another defense lawyer, just three months before he is set to go on trial for rape and sexual assault. Attorney Jose Baez told the judge overseeing the case that Weinstein had taken actions that made it difficult to represent him, according to a letter obtained by the New York Post. Baez [...]

  • https://pmcvariety.files.wordpress.com/2019/06/kindred_spirits_2019_v7.jpg

    Kindred Spirits Host Fundraiser for Child Refugees

    The Kids Entertainment Professionals for Young Refugees will host its third annual Kindred Spirits fundraising campaign this month on behalf of UNICEF and in coordination with World Refugee Day, which is Thursday. The grassroots, volunteer organization’s online fundraiser will take place from June 14-27, and 100% of every donation made will benefit UNICEF. “We call [...]

More From Our Brands

Access exclusive content