CAA Accused of ‘Fraud and Corruption of the Highest Level’ in Lawsuit

Worldview Entertainment says that it invested more than $55 million in film projects that others refused to finance

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Creative Artists Agency has been hit with a lawsuit by film financier Worldview Entertainment, who accuse the agency of “fraud and corruption at the highest level.”

In the suit, filed in Los Angeles Superior Court on Thursday, Worldview says that it began working with CAA in 2010, with CAA eventually agreeing to “provide Plaintiffs with opportunities and services, including investment advice regarding films designed to provide solid returns.”

The partnership, Worldview says, ended up being “a disastrous mistake,” as CAA “systematically engaged in predatory practices toward Plaintiffs.”

According to Worldview, rather than receiving first-look offers for films, they were passed duds by CAA that other financiers refused to fund, making Worldview “the financier of last resort.”

The string of poor-performing films that Worldview sank money into at CAA’s urging included Tom Hardy’s “Child 44,” “Blood Ties,” “The Green Inferno” and “Devil’s Knot.” In all, the suit says, Worldview ponied up “more than $55 million” in financing for more than 20 film projects.

In a statement to TheWrap, CAA counsel Jerry Bernstein called Worldview’s allegations “spurious.”

“Worldview has been embroiled in litigation in New York filed against it by its own investors, accusing its management of breach of duty and improper conduct with regard to the very investments about which Worldview now seeks to cast blame on CAA,” Bernstein said. “CAA denies Worldview’s spurious allegations and will defend itself vigorously in court.”

Alleging breach of fiduciary duty, fraud and other counts, the suit seeks unspecified damages.

Pamela Chelin contributed to this report.

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