Maybe this is why American Idol came to an end? It looks like 19 Entertainment, the producer for Idol, is having some real issues and filed for bankruptcy back in April and is now suing American Idol Season 11 winner Phillip Phillips for $6 million! Yes, I said $6 million! We have not seen much of Phillips other than his appearance at the Idol Finale, so I guess this explains why!
In the complaint, 19 Entertainment claims that Phillips is holding onto as much as $1 million of their money and that he should also be forced to pay at least $5 million for repudiating and breaching various agreements.
This has been a long battle between the two, as Phillips put out a petition with the California Labor Commissioner asserting that 19 “manipulated” him into accepting jobs and being in violation of California’s Talent Agencies Act, which says only licensed talent agents can procure employment for clients. He claimed that 19 had a fiduciary duty to him and they breached on that by making him take jobs that benefited the company and not him.
It gets even more interesting, as the petition moved pretty quickly, but not fast enough. A Labor Commissioner hearing was scheduled for May 31, but 19 Entertainment filed for Chapter 11 bankruptcy on April 28 due to a money dispute with American Idol creator Simon Fuller! Because of that bankruptcy filing, Phillips’ petition was put on hold.
Now 19 Entertainment is filing a complaint against Phillips and saying he is holding about $1 million from them in “anticipation” that his agreement to a recording and publishing deal will be voided. The complaint states: “Phillips has refused and insists that he will continue to refuse to perform pursuant to the Agreements, thereby causing Plaintiffs additional damages. The amount of the additional damages from these continuing breaches is not presently calculable with precision but will be presented at the time of trial and will exceed $5,000,000.”
Howard King, the attorney for Phillips, said: “19’s new complaint is a blatant attempt to evade California’s jurisdiction and thwart its fundamental public policies crafted to protect artists. 19 cannot murder its parents, then seek mercy as an orphan.”
Yeah, I think 19 Entertainment is in real deep and trying to get money wherever they can!
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