Relativity Media slapped Netflix with a lawsuit amounting to $1.5 billion. Relativity claims Netflix, the current giant streaming company owes them. Relativity Media also claims Netflix broke their agreement.
Relativity said that Netflix released the studio's films before hitting the cinema by suggestion. Ryan Kavanaugh, the founder of Relativity studio, accuses Netflix's actions were the result of the damages that amounted to $1.5 billion, according to NY Daily News.
Here's your first look behind the scenes of the #Limitless pilot: https://t.co/2Go6YPunb1 pic.twitter.com/o6HyRq0NYz
— Limitless (@LimitlessCBS) July 24, 2015
Relativity is now taking credit for Netflix's success, now being a giant streaming company. Netflix used to be a mail-order DVD company back in 2010. Netflix and Relativity partnered up and signed a deal together making them an industry leader in premium content.
The lawsuit filed by Relativity against Netflix states that the new giant streaming company was a virtual non-entity. The lawsuit also contends that Relativity was one of the largest mini-major studio in the world and responsible for the production of over 100 major feature films and TV shows including "Limitless."
Relativity filed a complaint in Santa Clara Superior Court and lamented how Netflix attempted to break its relationship with the company, according to Hollywood Reporter. Relativity has already filed bankruptcy and sold its television division to reduce their debt by about $630 million.
Relativity is now going after Netflix with damages amounting to $1.5 billion. The company which is headed by Ryan Kavanaugh alleges Netflix on ruining Relativity's reputation and spread rumors to producers, press outlets and talent agencies. Netflix responded to the accusation saying it is "baseless and ironic."
Relativity Media was the first studio that allowed Netflix to stream their films during the times no company was giving that chance to the current streaming giant. The complaint follows with a statement that Netflix was desperate and Relativity was the answer. Relativity added they chose Netflix to be their pay TV partner over HBO or Showtime.
Netflix paid more than $3 million for each film that was tied to Relativity. The amount goes up to $20 million depending on the success of each film. Relativity said that 85 percent of the new films of Netflix were theirs, estimating the years from 2010 to 2013.
Relativity alleges Netflix for attempting to put their business up for sale so the company wouldn't pay anymore. Relativity Media also claims that Netflix's focus was to evade the License Agreement and spread false statements so it could lead to the studio not having any more investors. The lawsuit states that the strategy of Netflix was successful.
