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Disney accused of withholding hundreds of millions of dollars from ‘Avatar’ sequel financier



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Avatar: The Way of WaterCourtesy: Disney Co.Hollywood financer TSG Entertainment is suing Disney for breach of contract.The suit filed Tuesday in Los Angeles Superior Court alleges that Disney and its studio 20th Century Fox committed a number of transgressions, including withholding profits and cutting deals to boost its streaming platforms and stock price. This act deprived TSG of cash to invest in individual films and its efforts to sell its stakes in other movies, the lawsuit says.Representatives from Disney did not immediately respond to CNBC’s request for comment.TSG co-finances the production and marketing costs of films in exchanges for a share of the defined gross receipts after the film’s release. The group has helped co-finance around 140 films produced by 20th Century Fox, which Disney acquired in 2019, including “Avatar: The Way of Water.” In total, the company said it has invested around $3.3 billion in the studio’s content since 2012.Audiences would also recognize TSG from the opening credits of films like “The Menu,” “Jojo Rabbit,” “The Greatest Showman” and “Gone Girl.” The financier’s logo is a depiction of a man with a bow shooting an arrow through several axe heads.Noticing a decline in profits, TSG requested an audit of a sampling o …

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