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Originally Posted by DaneMcCloud
Whoa. Lots of anger in this thread.
First off, anyone will tell you that the first thing that an artist of any kind must do is audit: You'll always find money.
Accounting mistakes are made all the time. Incorrect royalty rates are entered into the system inadvertently and many times, they're not found until audits are performed. I've never worked in film accounting per se (I did some audit work where I audited Universal's statements for Uni's publishing arm) but in the music business, it's written into every contract that the artist(s) and composer(s) have up to three years to audit after each royalty period has closed. I assume that it's similar on the film side, though I'd have to make a few calls or emails to friends to verify.
I cannot speak to the accuracy of New Line's accounting but it seems rather odd to me that these heirs are making this claim years down the line. I would think that it would be clearly obvious that royalties were not being accounted for accurately from the beginning.
I expect a settlement to happen rather quickly.
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Ehhh...
That sounds fishy.
I don't know a damn thing about the movie industry or how Time Warner is structured, but this stuff had ought to roll up under the audit of TW. It's possible that it structurally put it out of scope, but it should roll up under accounts payable, on the financial statements just like every other expense which are audited by an external firm.
Someone should be reviewing the internal controls for Accounts Payable at least annually. It smells malicious to me.
I'm with Dane though, my ass is in court ASAP if big money like that isn't flowing.
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