Universal Settles Home Video Lawsuit

A final settlement has been reached in a class action lawsuit against Universal Studios over unpaid profits from home entertainment sales. The class of filmmakers, directors, producers, writers and actors who alleged they were shortchanged by the studio, a unit NBCUniversal in Universal City, will split $26 million in retroactive and prospective profits. The final order is expected to be signed Friday before Los Angeles Superior Court Judge Elihu M. Berle. Lead plaintiffs’ attorney Daniel Warshaw of Pearson Simon & Warshaw LLP, in Los Angeles, said that any remaining balance from the $26 million will be given to the Motion Picture and Television Fund, a charitable organization in Woodland Hills providing health care, retirement and other services for entertainment industry professionals. “We are pleased with this settlement and know that it will provide relief to profit participants who would not otherwise be able to adjudicate claims of this nature,” Warshaw said in a statement. The lawsuit was filed in 2013 by the estate of late producer and director Colin Higgins alleging that Universal had not paid a fair share of the royalties coming to him for the 1982 film, “The Best Little Whorehouse in Texas.” Specifically, Universal had calculated the profit participation of Higgins based on 20 percent of home video revenue instead of 100 percent as outlined in contracts. Universal denied the allegations that the royalties it paid violated any contracts.