×

Voltage Pictures Settles With Law Firm in Busted China Deal

Voltage Pictures has reached a confidential settlement with the Zhong Lun law firm, ending a three-year legal dispute over the company’s canceled sale to a Chinese manufacturing firm.

The deal marked a high-water mark of sorts for China’s Hollywood buying spree, which came to an abrupt halt as Chinese regulators clamped down on overseas investment. In November 2016, Anhui Xinke New Materials announced that it would buy 80% of Voltage for $345 million.

But Xinke canceled the deal a month later, claiming that Voltage had failed to provide documents to Chinese regulators. Voltage sued Xinke and the Zhong Lun firm in January 2017, accusing Xinke of breaching the agreement and accusing Zhong Lun of breaching its duties as an escrow agent in the deal. Voltage alleged that the law firm had returned a $4 million breakup fee to Xinke as the deal collapsed, and sought the return of the fee.

The law firm, which is based in Beijing but has offices in the U.S., denied wrongdoing. The case was scheduled for trial on Feb. 3. But in a court filing last week, Voltage’s attorneys announced that the case had been settled. Terms were not disclosed.

Voltage reached a settlement with Xinke in May 2018, following an arbitration at the International Centre for Dispute Resolution.

At the time the deal collapsed, Xinke announced that it would buy 29.9% of Pegasus Entertainment, a Hong Kong-based firm. That deal, too, was canceled months later.

Xinke has since changed its name to Kingswood Enterprise Co., and says it has a dual focus on copper production and the film and TV business.

More Biz

  • Harvey Weinstein

    Weinstein Jury Ends First Day of Deliberation With No Verdict

    The jury in the Harvey Weinstein trial has ended the first day of deliberations without reaching a verdict. The jury got the case on Tuesday morning after a six-week trial, in which six women took the stand to accuse the disgraced producer of sexual assault. Weinstein faces five counts, including two counts of predatory sexual [...]

  • CDBaby logo

    CD Baby Is Shutting Down Its Retail Store

    As if the name “CD Baby” weren’t already an anachronism, the independent distributor announced late last week that it is shutting down its retail store, although it will continue to distribute physical product through other channels. “CD Baby’s mission is to help artists monetize and promote their music in the best ways possible,” a message [...]

  • Harvey Weinstein

    Harvey Weinstein Jury Requests to See Evidence During Start of Deliberation

    The jury in the Harvey Weinstein trial asked to be shown the blueprints of his Soho apartment, and some Weinstein emails in which certain accusers’ names were highlighted. The 12-person panel began deliberating earlier on Tuesday morning, after Justice James Burke read them instructions. Weinstein is accused of sexually assaulting Miriam Haley at the Soho [...]

  • American alternative rock band Pearl Jam

    Pearl Jam Tell Congressmen BOSS Ticket-Reform Act Is ‘Flawed’

    UPDATED: The BOSS Act is legislation designed to crack down on improper practices in the secondary ticket market — bots, price-gougers and the like — spearheaded by New Jersey Democratic Congressmen Bill Pascrell and Frank Pallone Jr. The bill, which is officially named the “Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act” [...]

  • Sofar Sounds Unveils a Battery of

    Sofar Sounds Unveils a Battery of New Programs for Artists

    Sofar Sounds — which has made a name and a business for itself by staging “secret gigs and intimate concerts” featuring emerging artists for an invited, engaged audience — today unveiled a series of new programs intended to serve artists better, including a new payment model that will see artists paid more for playing bigger [...]

  • The Night Manager Network

    Endeavor Content Takes Minority Stake in 'Night Manager' Producer Ink Factory

    Endeavor Content has taken a minority stake in “The Night Manager” producer The Ink Factory. Under the deal, the “Killing Eve” and “Night Manager” distributor is to set up a bespoke development fund for Ink Factory. The pact will specifically target the U.S. market with high-end TV series developed out of Ink Factory’s U.S. outpost [...]

  • David Coulthard, Sunil Patel, Jake Humphrey

    Sony Pictures Television Takes Minority Stake in U.K. Sports Producer Whisper

    Sony Pictures Television has invested in U.K. sports-focused production outfit Whisper Group. Effective immediately, the business will replace Channel 4’s Indie Growth Fund as a minority stakeholder in Whisper, which has become a leading voice in sports entertainment. Founded by BAFTA-winning CEO Sunil Patel, broadcaster Jake Humphrey and F1 commentator David Coulthard, Whispers covers NFL, [...]

More From Our Brands

Access exclusive content