Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Counsel Concerns

By Entertainment Law & Finance Staff
March 01, 2024

Malpractice Claims Filed Against Loeb & Loeb and Of Counsel Over King Fury 2 Film Production

A Chinese film production company seeks over $60 million in damages and alleges a Los Angeles law firm and its attorney committed legal malpractice and breached their fiduciary duty while involved in an overseas film production. Shanghai-based Creasun Entertainment USA Inc., has filed suit against Loeb & Loeb and attorney Michael Helfant, who is of counsel to the firm, in Los Angeles County Superior Court. Creasun Entertainment USA Inc. v. Helfant, 24STCV03380.

Creasun claims the defendants failed to diligently represent its interests when the company retained the firm and Helfant to negotiate its financing for the film King Fury 2, set to star Arnold Schwarzenegger and Michael Fassbender, among others. Creasun became involved with the production after film producer Alex Lebovici approached Minglu Ma, the company's chairman, about an investment opportunity in the film.

The lawsuit claims Lebovici and the defendants also "secretly developed an attorney-client relationship" that created a conflict of interest when they represented Creasun in negotiations with Lebovici and his business partners. When Ma visited Bulgaria for the movie's production, she claims she learned of alleged fraudulent activity with the film's budget. Despite only investing $3 million at the time, the film had over $4 million in its account and producers told Ma it "was a simple accounting error," the complaint said.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Anti-Assignment Override Provisions Image

UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?