AMC Agrees to $200 Million Settlement with Former 'The Walking Dead' Showrunner
LOS ANGELES – AMC and former “The Walking Dead” showrunner Frank Darabont have reached a settlement that will end the series’ profits participation lawsuit between them. AMC will pay $200 million to Darabont and CAA under the agreement.
The settlement was announced in a filing by the Securities and Exchange Commission on Friday.
“The Settlement Agreement provides for a cash payment of $200 million (the “Settlement Payment”) to the plaintiffs and future revenue sharing related to certain future streaming exhibition of ‘The Walking Dead’ and ‘Fear The Walking Dead’,” AMC wrote in the filing. “The Company has taken a charge of approximately $143 million in the quarter ended June 30, 2021 in consideration for the extinguishment of Plaintiffs’ rights to any compensation in connection with ‘The Walking Dead’ and any related programs and the dismissal of the actions with prejudice, which amount is net of approximately $57 million of ordinary course accrued participations. The Settlement Agreement also includes customary provisions included in such agreements, including providing for mutual releases, covenants not to sue, waivers, confidentiality, non-disparagement and indemnification for third party claims.”
Darabont and CAA sued AMC in 2013 over the profit-sharing deal from the hit TV show, after Darabont was fired from the show during its second season. They filed another lawsuit against AMC in 2018. The original suit claims that Darabont was wrongfully fired from the series, and that he is entitled to proceeds from the show. Darabont says that AMC both produces and airs the series, and signed a deal in which the network would be “selling” the show to itself, thus resulted in “the improper and abusive practice of self-dealing.”