Published On: Sun, Mar 25th, 2018

‘Rules Don’t Apply’ Investors Sue Arnon Milchan $50 Million for Fraud

Investors Sue Arnon Milchan who is also involved in Prime Minister Benjamin Netanyahu's bribery being conducted against him in Israel in Case 1000.

Arnon Milchan

A group of American filmmakers is suing Arnon Milchan who is defined as “a very well-known Israeli producer and distributor” in a $50 million Los Angeles court for fraud.

The investors, including Ron Burkle, Steve Bing and director, producer Bert Rattner, who has recently been charged with a series of cases of sexual harassment, argue that Milchan’s conduct is the reason for the failure of Warren Batty’s “Rules Do Not Apply”, leading to “its disastrous box office results and the loss of cross-complainants’ entire investment.”

The film, which marked Warren Batty’s comeback after a 14-year break, was one of the biggest box-office failures of 2016: it cost $55 million in production and distribution and grossed less than $3.9 million in the US. In a periodic romantic drama that tells of a love story between a young movie actress and her driver, behind his back of their employer, Howard Hughes. Batty also starred alongside Alden Ehrenreich, Lily Collins and Annette Bening.

The lawsuit was filed in Los Angeles on March 14, and the report was published at the weekend in Variety Entertainment.

Three months ago Arnon Milchan sued Warren Beatty and others in the group for $19 million for breach of contract. He claims that the film’s early test funds proved that the film had no commercial chance and suggested that investors reduce the volume of the distribution, but they demanded wide distribution and pledged to finance it.

The prosecution claims, that Yariv Milchan, Arnon’s son, evaded meetings with Batty.

According to the Variety report, when Batty personally came to the Regency offices to meet with Yariv for the film, he was told that Milchan was not in the office while he was there.

In another case, it was reported, the film was shown to Arnon Milchan, but he slept all along.

The investors, who invested $27 million in the production of the film, added to the lawsuit excerpts from positive reviews of the film and newspaper clippings accusing the studio of the failure of the film and its concealment from the public.

The lawsuit began as follows: “Based on the false promises of Arnon Milchan, a well-known Israeli producer and distributor, the plaintiffs and their colleagues invested money a medium-budget film directed and starring Warren Beatty, an Oscar-winning actor, and director of international renown for excellent films.

Investors had high expectations from the film, supported by Milchan’s false promises. The film received good reviews and should have at least a reasonable success at the box office, and may even become a significant hit. Instead, despite its qualities and good reviews, the film has become a populist failure in the United States and has hardly been distributed in the rest of the world.

The evidence will prove that this unexpected and unnecessary disaster occurred as a result of the breach of contract and the deception of Milchan and the companies under his control. This proven behavior led to the failure of a promising film and led to the plaintiffs losing every penny in their considerable investment. ”

Arnon Milchan is also involved in Prime Minister Benjamin Netanyahu’s bribery being conducted against him in Israel in Case 1000.

 

 

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