10:44am PT by Eriq Gardner
Madonna's Film Company Settles Lawsuit With Investor
Madonna's film company has settled litigation brought by an investor who alleged he was lured into making $770,000 in loans and was stiffed on both repayment and co-producer credits.
Jay Dykes, Jr. filed the lawsuit in 2008 against Maverick Motion Picture Group and said he loaned the money to another production company, Ironstar, believed to be owned by Madonna and her manager Guy Oseary.
Dykes alleged he made the loans based on promises of high returns and the weight that Madonna and Oseary had in the entertainment industry. The recipients of the funds were working for Maverick on several motion pictures, including 2006's Material Girls, starring Hilary Duff, on which Dykes says he was promised a co-producer credit.
The plaintiff says that $527,000 of his money was returned, but that there was a nearly 400K balance and that he never got that co-producer credit.
The case was notable for the way that Madonna was kept at arm's length from the production companies that were purportedly hers. When Dykes made moves to depose Madonna and Oseary in the case, for example, he was told that he was wrongfully "continuing to blur the lines of distinction between two individuals and several corporate entities."
In March, a Louisiana federal judge dimissed Madonna and Oseary from the lawsuit for lack of personal jurisdiction, but the suit continued against Maverick.
Dykes continued to pursue intensive discovery, including depositions of all of Maverick's management, including Madonna, and the production of documents, which Maverick resisted, leading to a judge's order in June to award sanctions to the plaintiff.
Now, Maverick has put the dispute to bed with a private settlement. The details of the agreement aren't public, but according to a motion to dismiss the case by the parties filed last week, the sides are bearing their own legal costs.