DISNEY SUED FOR PROFITS BY EX-STUDIO HEAD.Byline: Russ Britt Daily News Staff Writer Former Disney studio chief Jeffrey Katzenberg filed a lawsuit against his old employer Tuesday, claiming the company owes him $250 million in profits for blockbusters like ``The Lion King,'' ``Pocahontas'' and ``Toy Story.'' Katzenberg, now a partner with the studio DreamWorks SKG SKG Stichting Kwaliteit Gevelbouw (Dutch) SKG Spielberg, Katzenberg,and Geffen (DreamWorks Studios) SKG Thessaloniki, Greece - Thessaloniki (Airport Code) SKG Smith and Kraus Global , is seeking compensation under an incentive clause in his Disney contract for films and TV shows he shepherded during his 10-year tenure at the Burbank-based entertainment giant. Katzenberg wants a slice of the profits realized after his August 1994 departure, but Disney has said he is not entitled to them. The suit comes 20 months after Katzenberg's contentious departure from Disney following Chairman Michael Eisner's decision to pass him over for promotion to corporate president. That job opened up after the April 1994 death of Frank Wells Frank Wells (March 4, 1932 - April 3, 1994), was an American entertainment businessman. Previously, Wells had worked for Warner Brothers as its Vice President of West Coast in 1969, then in 1973 as President, and in 1977 as Vice Chairman until he left the company in 1982. , and eventually went to former Hollywood superagent Michael Ovitz Michael S. Ovitz (b. December 14 1946, Los Angeles, California) is a former talent agent and Hollywood powerhouse who served as the head of the Creative Artists Agency from 1975 to 1995. . ``This lawsuit is about the past and is being filed simply to enforce the terms of my written contract. It should not be misconstrued as any kind of personal or punitive action,'' Katzenberg said in a statement. After he left Disney, Katzenberg went on to form DreamWorks in October 1994 with famed director Steven Spielberg Noun 1. Steven Spielberg - United States filmmaker (born in 1947) Spielberg and record executive David Geffen. Disney spokesman John Dreyer John Louis Emil Dreyer (February 13 1852 – September 14 1926) was a Danish-Irish astronomer. He was born Johan Ludvig Emil Dreyer in Copenhagen. In 1874, at the age of 22, he went to Ireland to work as the assistant of Lord Rosse (the son and successor of the said he had not seen a copy of the nine-page complaint, filed in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Superior Court. ``Jeffrey's claim has been spun by numerous anonymous sources for quite some time,'' Dreyer said. ``We're not going to play the spin control game. If there is a lawsuit, then the courts will have actual facts to deal with.'' DreamWorks officials said Katzenberg had two phone conversations with Ovitz, but that no serious settlement talks took place. Disney never made an offer, they said. Disney, however, may want to settle because the company could be forced to open up its books if the case goes to trial. ``I had hoped this matter could be resolved in a spirit of fairness and goodwill but, having exhausted every avenue of communication, I am proceeding with the only recourse that is now available to me,'' Katzenberg said. The lawsuit states that Katzenberg was entitled to 2 percent of the profits from films put into production or acquired for distribution during his tenure. That includes films yet to be released, such as the upcoming ``Hunchback hunchback, abnormal outward curvature of the spine in the thoracic region. It is also known as kyphosis and humpback, and in its severe form a noticeable hump is evident on the back. of Notre Dame Notre Dame IPA: [nɔtʁ dam] is French for Our Lady, referring to the Virgin Mary. In the United States of America, Notre Dame ,'' scheduled for theaters this summer. Katzenberg estimates that the total potential profits of the properties he produced is at least $12.5 billion, entitling him to $250 million. Katzenberg signed two contracts during his tenure, one for four years beginning in 1984 and a six-year pact that started in 1988. Under Katzenberg, Disney studios went from $244.5 million in sales and $2.2 million in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in 1984, to $4.8 billion in revenue and $850 million in income in 1994. Disney shares fell -3/4 Tuesday to close at 63-5/8. CAPTION(S): Photo Photo: (Color) Jeffrey Katzenberg Seeking $250 million |
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