Ryan Kavanaugh Sues Adam Fields Over Memo Claiming Sexual Harassment

Jason LaVeris/FilmMagic; JB Lacroix/WireImage
Adam Fields (left), Ryan Kavanaugh

The two former Relativity execs are locked in battle, with Kavanaugh saying any allegation that he fraudulently created a memo accusing Fields of harassing women is "patently false."

Escalating their legal showdown, Relativity Media founder Ryan Kavanaugh has filed suit against former company co-president Adam Fields, who has alleged that Kavanaugh fraudulently created a memo in which seven women accused Fields of sexual harassment. Kavanaugh’s suit calls that claim “patently false” and says that Kavanaugh has suffered damages “in excess of $50 million."

In a recent filing with the U.S. Bankruptcy Court for the Southern District of New York, where Relativity is seeking approval to sell most of its assets to Ultra V Holdings, Fields’ attorneys recounted an earlier arbitration between Fields and Relativity in which the attorneys said Fields was awarded $8.44 million.

Kavanaugh’s suit, filed in Los Angeles Superior Court and alleging breach of contract, said that Fields’ account was “misleading, incomplete and inaccurate" and that it had “breached the confidentiality provisions of the arbitration.”

Denying that Kavanaugh fabricated a memo accusing Fields of sexual harassment, the new lawsuit alleges that Fields exhibited a pattern of harassing behavior, that he was fired from a Miramax movie “for similar behavior” and that Sony cut ties with him "for undisclosed reasons." It also alleges that Fields "engaged in illegal drug use and showed pornography at Relativity’s offices."

As part of the suit, Kavanaugh says that although he himself invested "tens of millions of his own capital" in the company, he worked for just $1 a year at Relativity. The suit says that coming out of bankruptcy, Kavanaugh was owed almost $7 million as a cure, but received less than $3 million against that cure.