Asleep at the Test Screening? ‘Rules Don’t Apply’ Investors Sue Arnon Milchan for Fraud

A group of movie investors has sued producer and financier Arnon Milchan for fraud, accusing him of negligence on Warren Beatty’s 2016 awards hopeful “Rules Don’t Apply.”

Investors like the embattled Brett Ratner, multimillionaire Steve Bing and failed Weinstein Company bidder Ron Burkle say Milchan tanked Beatty’s long-gestating Howard Hughes film by refusing to fulfill most of the points in his contract.

The fraud allegations come in response to a December suit from Milchan, who said the investors owed him close to $20 million following the commercial failure of the film, which earned $3.6 million at the box office on a $31 million production budget.

Also Read: Hollywood Producer Arnon Milchan Questioned in Bribery Inquiry Involving Israeli PM Benjamin Netanyahu

Milchan “did not function as a producer of the picture and had no significant involvement in supervising … absenting himself totally from such involvement and from the required functions of a producer,” the breach of contract suit filed last week in California said.

The filing aims to void repayment obligations, and also contends that Milchan — famously thanked in Leonardo DiCaprio’s Oscar speech, after he spent millions on costly additional shoots for “The Revenant” — was preoccupied with a scandal over alleged bribes to Israeli PM Benjamin Netanyahu.

Handing control of marketing and set supervision to his son Yariv Milchan, and even falling asleep during the one screening he had attended before the film was finished (Milchan denies) are among the material charges.

The filing also complains that Milchan paid more attention to other film projects that were less prestigious but had a significantly larger investment from Milchan and his company New Regency.

“Knowing that the production of the picture was primarily financed by the investors … Milchan and plaintiffs knew but concealed that they might well direct their efforts, attentions and expenditures to ‘A Cure for Wellness’ and ‘Assassin’s Creed,”‘ two films in which plaintiffs made substantial investments which were far more costly than [‘Rules Don’t Apply’],” the papers said of projects starring Dane DeHaan and Michael Fassbender, respectively.

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A group of movie investors has sued producer and financier Arnon Milchan for fraud, accusing him of negligence on Warren Beatty’s 2016 awards hopeful “Rules Don’t Apply.”

Investors like the embattled Brett Ratner, multimillionaire Steve Bing and failed Weinstein Company bidder Ron Burkle say Milchan tanked Beatty’s long-gestating Howard Hughes film by refusing to fulfill most of the points in his contract.

The fraud allegations come in response to a December suit from Milchan, who said the investors owed him close to $20 million following the commercial failure of the film, which earned $3.6 million at the box office on a $31 million production budget.

Milchan “did not function as a producer of the picture and had no significant involvement in supervising … absenting himself totally from such involvement and from the required functions of a producer,” the breach of contract suit filed last week in California said.

The filing aims to void repayment obligations, and also contends that Milchan — famously thanked in Leonardo DiCaprio’s Oscar speech, after he spent millions on costly additional shoots for “The Revenant” — was preoccupied with a scandal over alleged bribes to Israeli PM Benjamin Netanyahu.

Handing control of marketing and set supervision to his son Yariv Milchan, and even falling asleep during the one screening he had attended before the film was finished (Milchan denies) are among the material charges.

The filing also complains that Milchan paid more attention to other film projects that were less prestigious but had a significantly larger investment from Milchan and his company New Regency.

“Knowing that the production of the picture was primarily financed by the investors … Milchan and plaintiffs knew but concealed that they might well direct their efforts, attentions and expenditures to ‘A Cure for Wellness’ and ‘Assassin’s Creed,”‘ two films in which plaintiffs made substantial investments which were far more costly than [‘Rules Don’t Apply’],” the papers said of projects starring Dane DeHaan and Michael Fassbender, respectively.

Related stories from TheWrap:

Hollywood Producer Arnon Milchan Questioned in Bribery Inquiry Involving Israeli PM Benjamin Netanyahu

'Revenant' Producer Arnon Milchan Alleged to Have Lobbied John Kerry For Visa Through Israeli PM

Israel Film Festival to Honor Producers Arnon Milchan and Mace Neufeld

‘Rules Don’t Apply’ Investors Accuse Arnon Milchan of Fraud

“Rules Don’t Apply” was Warren Beatty’s return to the screen after a prolonged absence. It was a dud at the box office, but it’s enjoying a second life in court, where its big-shot investors are fighting over who is to blame for its failure and who should pick up the tab. In the latest salvo, […]

“Rules Don’t Apply” was Warren Beatty’s return to the screen after a prolonged absence. It was a dud at the box office, but it’s enjoying a second life in court, where its big-shot investors are fighting over who is to blame for its failure and who should pick up the tab. In the latest salvo, […]

Leonardo DiCaprio to Star in Sam Phillips Biopic for Paramount

Paramount Pictures has acquired the book “Sam Phillips: The Man Who Invented Rock ‘N’ Roll” for an adaptation to star Leonardo DiCaprio, TheWrap has learned.

The film will be developed by Appian Way’s DiCaprio and Jennifer Davisson.

The book, written by Peter Guralnick (“Last Train to Memphis”), tells the story of Phillips and the music that he shaped in his tiny Memphis studio with artists as diverse as Elvis Presley, Ike Turner, Howlin’ Wolf, Jerry Lee Lewis and Johnny Cash, introducing a sound that had never been heard before.

DiCaprio and Davisson will produce along with Guralnick, Mick Jagger, Victoria Pearman, Steve Bing, Ian Montone, Rick Yorn.

The actor’s production company currently has four projects in development with the studio, including “The Devil in the White City,” based on the book by Erik Larson, “Sandcastle Empire,” a yet untitled film and a limited television series.

The Appian deal adds prestige to the Paramount lot — in the form of newly-minted Oscar winner DiCaprio — as Paramount continues to seek a minority shareholder to infuse the studio with cash.

Also Read: Paramount Wins Auction for Cuban Mafia Book ‘The Corporation’ (Exclusive)

Appian Way has produced films like “The Revenant,” “The Wolf of Wall Street,” “The Ides of March,” “Public Enemies” and “The Aviator.”

The company is currently in post-production on Ben Affleck‘s “Live By Night” (2017) and is in pre-production on “Robin Hood: Origins” (2017).

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Leonardo DiCaprio’s Appian Way Signs 3-Year Deal With Paramount

Leonardo DiCaprio Circles ‘Truevine’ Adaptation for Paramount

Paramount Wins Auction for Cuban Mafia Book ‘The Corporation’ (Exclusive)

Paramount Pictures has acquired the book “Sam Phillips: The Man Who Invented Rock ‘N’ Roll” for an adaptation to star Leonardo DiCaprio, TheWrap has learned.

The film will be developed by Appian Way’s DiCaprio and Jennifer Davisson.

The book, written by Peter Guralnick (“Last Train to Memphis”), tells the story of Phillips and the music that he shaped in his tiny Memphis studio with artists as diverse as Elvis Presley, Ike Turner, Howlin’ Wolf, Jerry Lee Lewis and Johnny Cash, introducing a sound that had never been heard before.

DiCaprio and Davisson will produce along with Guralnick, Mick Jagger, Victoria Pearman, Steve Bing, Ian Montone, Rick Yorn.

The actor’s production company currently has four projects in development with the studio, including “The Devil in the White City,” based on the book by Erik Larson, “Sandcastle Empire,” a yet untitled film and a limited television series.

The Appian deal adds prestige to the Paramount lot — in the form of newly-minted Oscar winner DiCaprio — as Paramount continues to seek a minority shareholder to infuse the studio with cash.

Appian Way has produced films like “The Revenant,” “The Wolf of Wall Street,” “The Ides of March,” “Public Enemies” and “The Aviator.”

The company is currently in post-production on Ben Affleck‘s “Live By Night” (2017) and is in pre-production on “Robin Hood: Origins” (2017).

Related stories from TheWrap:

Leonardo DiCaprio's Appian Way Signs 3-Year Deal With Paramount

Leonardo DiCaprio Circles 'Truevine' Adaptation for Paramount

Paramount Wins Auction for Cuban Mafia Book 'The Corporation' (Exclusive)