Film director Peter Jackson's production company, Wingnut Films, has filed a lawsuit against New Line Cinema and its subsidiary Katja Motion Pictures. In the suit, Jackson alleges that New Line has via "wilful, wanton, malicious, oppressive, [and] fraudulent" means cheated him out profits from the 2001 blockbuster The Lord of the Rings: The Fellowship of the Ring.
Among its numerous claims, the suit states that New Line pocketed "secret profits"; short-changed Wingnut by way of sweetheart deals with affiliates; and allowed its subsidiaries to overcharge for services rendered, thus hindering Wingnut's profit participation.
A positive outcome for Jackson could possibly result in a settlement for the other two films of the Lord of the Rings trilogy.
The Lord of the Rings: The Fellowship of the Ring has grossed nearly $315 million at the U.S. / Canada box office, and more than $556 million overseas — not counting revenues from DVD, video, and merchandise sales.