For the second time, a big name in Hollywood has sued New Line Cinema in reference to disclosing its accounting for the hugely successful "Lord of the Rings" trilogy.
This time Academy Award-winning producer Saul Zaentz has sued the studio, which says the studio is hiding profits. Director Peter Jackson has already filed a suit alleging the same behavior.
The rift between Jackson and New Line is so strong, that it has put a big question mark on whether the prequel to the series - The Hobbit - will be directed by Jackson.
Zaentz bought the rights to the "Hobbit" and "Lord of the Ring" novels in 1976, and licensed them to Miramax Film, which then assigned the license to New Line.
Included in the contract, according to the law suit, Zaentz would receive a share of the profits as well as the right to have the books of New Line audited.
As in the case of Jackson, New Line has refused to go along with Zaentz, and so the lawsuit. The lawsuit asks for damages along with the judge to enforce the terms of the contract by making New Line agree to the audit.
The longer this goes on, the more it makes you wonder why New Line is doing this. If they were clean in it all, why resist an audit, which they know they'll have to eventually allow?
There is also further threat of increased damages against them if they have indeed hid profits from Zaentz and Jackson.
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