
David Duchovny sues Fox
A Variety article
Distributed by Reuters
By Janet Shprintz
August 14th, 1999
"X-Files" star David Duchovny sued 20th
Century Fox Film Corp. Thursday, alleging that the studio has cheated him
out of millions of dollars in profits from the hit television series.
The lawsuit, filed in the Santa Monica branch of Los Angeles
Superior Court, alleges that Fox sold various rights to the
"X-Files" to its own or affiliated companies at below-market
prices and engaged in other actions that reduced the apparent profits
generated by the series.
Adding an unusual twist, Duchovny also alleges that series
creator and executive producer Chris Carter conspired with Fox to cover up
the self-dealing, and was paid hush money amounting to millions of dollars
for his compliance. Carter, however, is not named as a defendant in the
lawsuit.
Although the amount of damages is not specified in the
complaint, sources say Duchovny is seeking in excess of $25 million.
Duchovny is not planning to leave the series, which is beginning its seventh
season.
A spokesperson for Fox said, "It is the policy of this
company not to comment on potential or actual litigation. In fact, we have
neither seen a complaint nor are we aware of a complaint having been served
on Fox. Suffice to say, it is regrettable that Mr. Duchovny and his
representatives have opted to communicate this matter through the press
rather than directly with Fox."
Carter could not be reached for comment Thursday.
The series, starring Duchovny as special FBI agent Fox
Mulder and Gillian Anderson as his colleague Dana Scully, is hugely
profitable. According to the complaint, the series will generate a profit of
$1.4 billion to $1.5 billion to Fox over its life as a network series, in
syndication and in other formats. The series was also the basis for a
feature film with a worldwide gross of almost $185 million.
According to the complaint, Duchovny agreed in 1995 to
extend his contract to do the show for two more years in exchange for profit
participation, which was to be defined and paid in the same manner as
Carter's participation.
But, states the complaint, because of "corporate
greed," Fox intentionally reduced revenues to profit participants by
selling the show to its affiliates instead of seeking the most competitive
and beneficial deal.
Fox sold the series to its own broadcast network, Fox
Broadcasting Co.; its own cable network, FX Cable Network; and the
syndication rights to its own group of stations, Fox Television Stations.
As for Carter's role in the matter, Duchovny alleges that
Fox "paid to Carter millions of dollars in 'hush' money and granted to
Carter a 13-episode commitment to develop and produce a new television
series for Fox and Fox Broadcasting in order to 'buy' Carter's silence and
his acquiescence in Fox's self-dealing with its affiliated entities."
Attached to the complaint is an internal Fox memo indicating
a $4 million payment to Carter and an additional series commitment. Duchovny
alleges that the payments to Carter were charged against "X-Files"
as advances to Carter and deducted from the gross receipts of the show. By
reducing the gross, these payments also reduce Duchovny's profit
participation.
Duchovny and his company, King Baby, are represented by
Larry Stein of Alschuler Grossman Stein & Kahan. In similar suits
alleging self-dealing, Stein represented Wind Dancer, the producers of
"Home Improvement,'' against ABC, and Alan Alda, who has a profit
participation in the "MASH" series, in a suit against Fox. Both
cases were settled before trial.
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