Michael Douglas Owes Him $1M, Pal Says

Recent Cases

Actor-producer Howard Zuker says Michael Douglas forced him out of the company the two men co-founded, American Entertainment Holding Co., owing him a promised $1 million bonus. Zuker appeared under the name Zach Norman in "Romancing the Stone," "Night Moves," "Hard Times," and other movies.

In his Superior Court lawsuit, Zuker says Douglas has been AEHC's main financial backer since it began. Zuker says he and Douglas became friends in 1976, after meeting at the Cannes Film Festival. He claims that in 1998, he suggested that Douglas and he buy the American Play Company, which held rights to what the complaint calls "a massive library of thousands of owned or managed intellectual property rights."

He claims Douglas eventually agreed to finance Zuker's purchase of APC. But AEHC had trouble getting off the ground, Zuker says. Despite multiple funding injections from Douglas, AEHC was never able to raise enough money to meet its operating budget.

Zuker blames this on Douglas' repeated vetoes of potential investors, and on investment banker Christopher Baker, who invested $2.5 million in AEHC, but allegedly blocked further investments for nearly two years by failing to complete a Private Placement Memorandum to define the terms for potential investors.

Eventually, Zuker claims, Baker drafted a memorandum that "relegated AEHC from the centerpiece of the deal to a bit player."

Baker also is a defendant in this case.

Zuker says the new deal called for AEHC to give up its rights to the film library. The memorandum cut out AEHC financially and replaced it with Granite-Glass, Douglas's and Baker's joint company, as manager of the company's "Film Fund." It allegedly earmarked $7 million in profits for Douglas's and his wife, Catherine Zeta-Jones's, production companies.

The new plan was "directly contrary to the parties' prior understanding and conversations, and a blatant attempt to co-opt AEHC's valuable business opportunity," according to the complaint.

Related listings

  • Booksellers Challenge Oregon Censorship Law

    Booksellers Challenge Oregon Censorship Law

    Recent Cases 04/28/2008

    An Oregon law that prohibits distribution of sexually explicit material to minors interferes with the right to provide materials protected by the First Amendment, Powell's Books, other booksellers and Planned Parenthood claim in Federal Court. Oregon...

  • Anatomy of a Deal Gone South

    Anatomy of a Deal Gone South

    Recent Cases 04/25/2008

    When Peter Ehrenberg testified in a Georgetown, Del., courtroom in December, it marked a first in the Lowenstein Sandler M&A partner's 34-year career. Never before had he taken the witness stand to defend one of his contracts. Then again, nothing...

  • Film Editor Says He Was Cheated

    Film Editor Says He Was Cheated

    Recent Cases 04/24/2008

    Damien Leveck, a film editor, claims Paulist Productions and Forgiveness LLC defrauded him of wages and wrongfully fired him while he worked on a film called "Forgiveness." In his Superior Court claim, Leveck says he worked as a creative adviser for ...

Lawyer Website Design For Sole Practitioners - Law Promo

Law Promo understands that running a solo law practice can be a difficult undertaking at any stage, especially if you are just starting up your practice.

The most challenging part of running any solo business can be managing each and every aspect, especially those areas in which you have less experience. Marketing is often one of the weakest areas for small businesses and yet is the most important in ensuring business growth.

A solid internet marketing campaign is crucial, as it can level the playing field between you and larger firms and is by far the most cost effective way to attract more clients.

Business News

Cook County IL Trucking Lawyers We are one of Cook County's leading Workers’ Compensation firms. Illinois workers’ compensation, transportation lawyers. >> read
Santa Ana, CA Workers' Compensation Lawyers We are one of Orange County’s leading Workers’ Compensation firms. >> read