Sony Pictures is suing the Wanda Group for $49 million.
The lawsuit, which was filed in London’s High Court in March of this year, is being fought by each company’s subsidiaries, Columbia Pictures Corporation Limited and Wanda Kids Cultural Development Co., Limited respectively. The legal battle dates back to an agreement struck between Silvergate Group Holdings and Wanda Hong Kong in 2017. Sony bought Silvergate in 2019.
The lawsuit alleges that another one of Wanda’s subsidiaries, Wanda Hong Kong, agreed to buy a 51% stake in Silvergate-owned Vampire Squid Productions for $38,250,000 in 2017. The agreement included a provision that the remaining 49% of Silvergate’s shareholding in Vampire Squid was subject to an option for Wanda to purchase at a set price (calculated on the basis of the company’s financial performance) at a later date.
After Sony bought Silvergate, the latter assigned its rights — including in the option agreement – to Columbia Pictures, who then notified Wanda they intended to exercise the option in the agreement and complete the 49% share transfer, which they valued at $87.4 million.
After Wanda disputed the valuation, the parties agreed to instruct an accountant to come to a mutually-agreeable figure. However no accountant was ever appointed after, Columbia Pictures alleges, Wanda “caused significant delays” and “frustrated [the accountant’s] appointment.”
Citing Wanda’s “failure properly to engage” in the share transfer process, Columbia made some concessions and agreed to a final price of $49 million. But they said Wanda continued to stall, refusing to attend a meeting to execute the share transfer and failing to pay the sale price.
Columbia Pictures are now seeking $49 million plus interest as a debt due to “loss and damage” they have suffered.
