×
You will be redirected back to your article in seconds

WGA Takes Aim at Endeavor IPO, Tells Members It Has ‘Sufficient Funds’ for Legal Battle

The Writers Guild of America has gone to the Securities and Exchange Commission in its battle with Hollywood’s largest talent agencies over the issue of packaging fees and affiliated production.

The guild sent a letter to William Hinman, director of the SEC’s corporate finance division, the guild accuses WME parent company Endeavor of misrepresenting the number of clients it has in its talent representation units in the IPO prospectus the company filed in May. Endeavor strongly denied the guild’s assertion.

Endeavor states that WME has more than 6,000 clients, but the guild notes that starting on April 13, WME saw an exodus of about 1,400 writer clients.

“We believe this information is material to the risks of investing in Endeavor and must be disclosed. Endeavor’s failure to disclose the number of client terminations and the substantial decline in its total number of clients following WME’s refusal to sign the WGA’s Code of Conduct appears to be a serious misrepresentation,” Tony Segall, WGA West general counsel, wrote in the letter sent Monday.

Endeavor said the guild was offbase and stood by the number.

“Once again, in an attempt to disrupt our business, WGA leadership is misrepresenting the facts,” Endeavor said in a statement. “Endeavor has clearly stated that it has ‘more than 6,000 clients’. This is not a static number given the fluidity of the client business, and is still accurate today even after the departure of our former writer clients.”

Separately, the WGA on Wednesday sought to tamp down rumors that it would face major financial strains by having to wage legal battles on two fronts, the case the guild filed against the four largest talent agencies in April and the separate lawsuit filed by WME on Monday against the guild. In a message to members, the guild said it anticipated the legal costs and response from WME.

“The WGA has sufficient funds to deal with legal costs of filing and defending these lawsuits,” the WGA wrote. The guild said its annual report for 2018 will be mailed to members on Friday.

Popular on Variety

More TV

  • David Goodman

    WGA West's David Goodman on Agency Strategy: 'We'll Start Meeting as Soon as Possible'

    David Goodman, who was resoundingly re-elected president of the Writers Guild of America West on Monday, said the guild plans to meet with several talent agencies soon in an effort to ease the impasse over packaging fees and affiliated production. “Many agencies had indicated that they wanted to wait to see the results of the [...]

  • THE TITAN GAMES -- "The Titan

    'Titan Games' Renewed for Season 2 at NBC

    NBC has renewed the Dwayne Johnson-hosted competition series “The Titan Games” for a second season. The series features men and women battling opponents in head-to-head physical challenges designed by Johnson. Winners advance to Mt. Olympus, a test of speed, strength, agility and endurance. “When we launched ‘The Titan Games,’ we set out to create an [...]

  • David Goodman

    David Goodman Re-Elected President of Writers Guild of America West

    David Goodman has been convincingly re-elected to a two-year term as president of the Writers Guild of America West, beating Phyllis Nagy in a bitter contest that became a referendum on the guild’s ongoing battle with talent agents. Goodman received 4,395 votes to Nagy’s 1,282 in an election that yielded record turnout among the WGA [...]

  • first wives club BET

    TV Review: 'The First Wives Club' on BET Plus

    Launching a series based on a beloved property is harder than it seems. On the one hand, you get the immediate boost of name recognition to lure in preexisting fans. On the other, straying too far from the plot and/or spirit of the original risks sparking their righteous wrath. It’s a tricky balance to strike, [...]

  • Thomas Golubic GMS Conference

    Guild of Music Supervisors President: 'The Economics of the Job Don't Work Anymore'

    The Guild of Music Supervisors (GMS) hosted its 5th annual “State of Music in Media” conference on Saturday, Sept. 15, at the Los Angeles Film School. Featuring a wide array of panel discussions on all manner of issues related to music in film, television and advertising, the confab drew top composers, music supervisors, licensing and [...]

  • Christopher Eccleston Anorexia

    Christopher Eccleston Reveals He Was 'Very Ill' With Anorexia While Filming 'Doctor Who'

    “Doctor Who” actor Christopher Eccleston has opened up about his anorexia, body dysmorphia and suicidal thoughts. Eccleston, who played the ninth incarnation of the Doctor, made the revelations in his forthcoming autobiography “I Love the Bones of You: My Father and the Making of Me.” “Many times I’ve wanted to reveal that I’m a lifelong [...]

More From Our Brands

Access exclusive content