11:13am PT by Gregg Kilday
The Weinstein Co. and Relativity Settle Legal Battle Over Remake of 'The Crow'
The Weinstein Co. and Relativity Media have settled their legal battle over remake rights to The Crow, the two companies said Monday in a joint statement.
"The parties will continue to work on the film together as planned," the statement said.
As part of the out-of-court settlement, the parties have dropped their dueling claims against each other. TWC won't further pursue a lawsuit that claimed Ryan Kavanaugh's independent studio breached a 2009 distribution agreement that allegedly gives TWC the right to release the movie globally and in turn, Relativity has dismissed its $20 million claims that TWC botched the release and distribution of the movie Nine.
In 2009, the companies agreed to work together on The Crow.
But last April, TWC sued after Relativity allegedly shopped around distribution rights to a planned remake of the 1994 action fantasy.
Represented by Bert Fields and David Boies, TWC alleged that Relativity had refused to confirm its obligations under the agreement and wanted an injunction that prohibited Relativity from selling foreign and domestic distribution rights elsewhere.
Relativity responded that TWC had fraudulently induced it into sinking $20 million into the 2009 musical Nine, in which Relativity was an investor, based on alleged misrepresentations that there would be enough P&A spending to make the film a hit in the marketplace. Instead, the film, which cost $115 million to make, grossed less than $20 million domestically.
Looking to avoid that situation again, Relativity asked TWC if it had the funds to properly release The Crow, with Kavanaugh telling Harvey Weinstein he needed to show the necessary financial backing. TWC apparently declined the request, leading Relativity to seek new distribution, setting off the dueling litigation.
In Relativity’s lawsuit, the company accused TWC of botching the release of Nine and refusing to pay Relativity the money owed to it under the agreements.
In June, a Los Angeles Superior Court judge granted Relativity's motion to compel arbitration.
Now, the parties have come to a private settlement where full terms have not been made public, but the two companies will work together on the remake of The Crow.