Netflix is facing a $105 million lawsuit after a master copy of an unreleased Nicolas Cage thriller was allegedly stolen from the streaming company’s Hollywood offices. Swiss billionaire Simon Afram, who personally financed and produced the $45 million film “Fortitude,” is accusing Netflix of breach of contract after its digital cinema package disappeared nine days after being delivered. Netflix disputes that it is financially responsible for the loss and has accused Afram’s attorneys of engaging in “hostile attempts to extort money” from the company.
An unencrypted master copy of “Fortitude” was hand-delivered to Netflix’s Hollywood headquarters on June 15 at the streamer’s request. The transfer was reportedly part of the movie’s ongoing sales process. Studios reviewing potential acquisitions commonly request a digital cinema package, or DCP, that can be projected inside a commercial theater.
Netflix executives screened “Fortitude” the following day. However, Netflix Original Film director Sean Berney informed parties connected to the production on June 25 that the drive containing the film had been stolen, according to an email included as an exhibit in the lawsuit.
“This is a first for us. Unfortunately, someone stole a good amount of drives from our office desks this past week. We’ve been working through this with our security teams to no luck,” Berney wrote, per Page Six. “Our piracy teams are on high alert with the breach and will monitor, but they are likely just selling the drives for scrap given they would require a [key delivery message].”
Berney continued, “We will of course create a new DCP or reimburse you for this missing drive. Apologies again and here to answer anything further and/or connect you with our security teams.”
A source at Netflix claimed the other missing drives were empty and did not contain additional projects. The complaint does not clarify whether the stolen DCP was the only existing master copy of “Fortitude.”
Lawsuit Claims Netflix Waited To Disclose The Theft
Afram’s lawsuit alleges Netflix may have known about the missing drive for as long as one week before informing the filmmakers.
“Netflix’s email indicated that Netflix had known about the theft of the DCP for potentially a full week without ever advising plaintiffs that Netflix had allowed” Fortitude’s DCP “to be stolen right off a Netflix desk,” the complaint states.
The producer’s attorneys argue that Netflix’s proposed response failed to account for the film’s production cost and potential market value. Creating a replacement DCP would reportedly cost approximately $800, while Afram invested more than $45 million into developing and producing the project over seven years.
The case was filed in federal court in California’s Central District. Afram is represented by Caroline Mankey and Christopher McAndrew of Akerman, along with Neville Johnson and Hyura Choi of Johnson and Johnson.
‘Fortitude’ Was Inspired By A Real-Life World War II Spy
“Fortitude” centers on Dusko Popov, a real-life World War II double agent and playboy who reportedly helped inspire Ian Fleming’s James Bond novels. At an earlier stage in the project’s development, Martin Scorsese was considering directing Simon Afram’s screenplay as a potential Leonardo DiCaprio vehicle. The final version instead reunited Cage with filmmaker Simon West, who previously directed him in the 1997 action movie “Con Air.”
The movie also stars Ben Kingsley and Ron Perlman, with a supporting ensemble that includes Matthew Goode, Michael Sheen, Art Malik, Jordi Mollà, Lukas Haas, Ed Skrein, Alice Eve, Paul Anderson and Emilio Sakraya. Court documents describe the film as “tonally in the vein of ‘Ocean’s Eleven’ meets ‘Inglorious Basterds.’”
“The resulting damage to Plaintiffs is profound,” the lawsuit states. “Through its mishandling of the Film and subsequent dismissiveness, Netflix has jeopardized Plaintiffs’ investment of over $45 million and the significant value of the Film itself. Netflix has also deprived the Film, its cast, and its creators of the opportunity to bring their work to market and receive recognition that a properly marketed worldwide release likely would have generated.”
Netflix Denies It Bears The Risk Of Loss
Netflix pushed back against Afram’s allegations in a statement, arguing that the film was delivered without sufficient industry safeguards.
“Netflix disputes any claim that it bears the risk of loss for a film delivered without the proper industry-standard safeguards. While we do not own the rights to ‘Fortitude,’ we take content security seriously and have taken extra measures to support the filmmaker and his team. This includes conducting a thorough investigation and offering to monitor known piracy sites for any unauthorized distribution or sale,” the streamer stated.
Netflix also addressed why it has not provided Afram’s legal team with details about its investigation. “We have declined to share anything about our ongoing investigation with the law firm representing Simon Afram, given their hostile attempts to extort money from Netflix over this situation, including immediately demanding $165 million for the film rather than work with us in good faith,” the company added.
Although Afram is now seeking $105 million, Netflix claimed his attorneys initially demanded $165 million.
Producer Explains Film’s Alleged $112.5M Value
Afram’s attorneys based their damages calculation partly on what they believe the film could have earned through a properly handled worldwide release. According to the complaint, the estimate considers early interest from studios and distributors, audience test scores, feedback from sales agents and the commercial potential of the genre.
The lawsuit claims “the film can be conservatively estimated to at least break even, which in the motion picture industry translates to revenues of at least 2.5 times the production budget, or $112,500,000.”
Afram also emphasized that his concern extends beyond recovering his personal investment. “I spent seven years of my life bringing this incredible true story to the screen. But this film was never mine alone. It belongs to the extraordinary cast and their performances of a lifetime that deserve to be seen and recognized. It represents the moment these artists have earned,” he said.
The lawsuit now leaves a federal court to determine whether Netflix can be held responsible for the missing DCP and whether its disappearance caused the nine-figure damages Afram claims.
