According to The Hollywood Reporter, Director Peter Jackson's production company Monday sued New Line Cinema on claims it has been shortchanged profits from part one of the Lord of the Rings trilogy.
Wingnut Films claims in a federal lawsuit filed in Los Angeles that New Line and subsidiary Katja Motion Pictures failed to properly calculate revenue, including revenue from DVD sales, from the 2001 Lord of the Rings: The Fellowship of the Ring. The suit does not specify an amount sought in damages but claims the film grossed more than $314 million in box office receipts in the United States and more than $556 million overseas, plus revenue from video and merchandise sales.
The suit accuses the studio of giving affiliates favorable licensing deals. It seeks a court injunction against New Line from reaching deals related to the film with affiliates
"without first seeking the most competitive and beneficial deals from unaffiliated third parties in a free and open market."