The producers of Kung Fury 2 are suing Creasun Entertainment, which has held up post-production on the much-anticipated sequel. Writer/director David Sandberg is returning to helm the feature-length follow-up to his hit 2015 80s short that went on to become a huge hit. Unfortunately, a dispute has emerged regarding the movie's financing, which is currently preventing any work from being done.

According to a new report, the producers of the movie are suing Creasun Entertainment USA, a Los Angeles-based division of Minglu Ma's Creasun Media. The company boarded Kung Fury 2 as the primary financier, agreeing to put up $22.3 million of the movie's $33.4 million budget. However, $10 million of that money was allegedly never delivered, which held up post-production work being done by Double Negative. The suit, which alleges breach of contract and fraud, was filed earlier this month in L.A. Superior Court. Producer Philip Westgren had this to say in a statement.

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"We are deeply disappointed in Creasun's failure to complete its funding obligations. Our attempts to resolve this situation have only been met with stonewalling and improper actions to further disguise Creasun's contractual breach. We are undertaking these legal actions with the full support of the other financiers and key parties involved. The filmmakers look forward to finishing this movie in the way that it deserves to be."

Filming has already been completed but the sequel needs extensive visual effects work done before it is ready to go. It is alleged that Creasun has offered excuses as to why they haven't paid the additional $10 million. In response, a lawyer representing Creasun and Minglu Ma said the lawsuit is "legally deficient" and that they intend to have it dismissed or, if need be, file a countersuit. What's more, the attorney offered an explanation, asserting that the filmmakers are at fault.

"As the majority investor in Kung Fury 2 and as co-producers of the film, Creasun had the right to takeover the film and to finish it in collaboration with the director and the other creative elements which are involved. Omitted from Plaintiff's lawsuit is the fact that they refused to adjust the production schedule and take other necessary actions to address the realities of post-coronavirus film production. This put Creasun's entire investment at risk and the filmmakers' refusal to cooperate with Creasun to finish the film, and the act of filing a lawsuit to further obstruct its completion, are the sole reasons why production on Kung Fury 2 cannot continue at this time."

Kung Fury 2 has lined up an impressive cast that includes Alexandra Shipp, Michael Fassbender and Arnold Schwarzenegger. David Hasselhoff will also be returning, having previously recorded a music video for the original short. The sequel will once again serve as a love letter to 80s action movies, with the action heading to 1985 Miami.

No distributor has boarded the movie yet. If this legal battler gets messier, that could get in the way of it ever seeing the light of day. We'll be sure to keep you posted as any further details are made available. This news comes to us via The Hollywood Reporter.