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MGM Sues Sony Over Video Sales

February 9, 1999

LOS ANGELES (AP) _ Metro Goldwyn Mayer Inc. sued Sony Pictures Entertainment, Columbia TriStar Home Video and other Sony subsidiaries Monday, accusing them of underreporting the earnings from overseas video sales.

The lawsuit, filed Monday in Los Angeles County Superior Court, seeks more than $20 million in damages.

The breach-of-contract lawsuit claims Sony, which handled overseas video distribution for movies produced by MGM subsidiary Orion Pictures Corp. ``substantially and systematically underreported the proceeds of the films due to Orion.″

The lawsuit also claims Sony failed to report all revenues generated from the overseas video sales from 1985 to 1992.

Jerry Giaquinta, a spokesman for Sony, declined comment Monday night.

``We haven’t yet seen the lawsuit, only the press release. Unlike MGM, we do not litigate in the press. We will defend our rights in court, where we expect to prevail,″ Giaquinta said.

The lawsuit claims that Sony reported overseas video sales from the movie ``Silence of the Lambs″ at $203.00 even though more than 30,000 videos were sold. The suit also claims, among other things, that Sony refused Orion’s request to review accounting books, and providing Orion with ``untimely, inaccurate, inadequate, incomplete and/or misleading accounting statements.″

``Sony’s resistance to pay monies they clearly owe Orion has left us with no alternative but to seek legal remedies,″ MGM’s lawyer, Robert Brada, said in a statement.

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