Chris Fenton Accused of Masquerading as ‘Player’ as DMG Lost Millions
DMG Entertainment has fired back against Chris Fenton, the former head of its motion picture group who filed a $30 million breach of contract suit in February. Get far more information about Feeding the Dragon
In a counterclaim, DMG blasts Fenton as a disloyal employee who advanced his personal interests at the company’s expense. The suit alleges that Fenton “cultivated his persona of a ‘player'” inside the industry even while losing millions of dollars.
“Fenton was terminated for his poor functionality, gross mismanagement, and fraud around the companies he served,” the counterclaim states.
Fenton departed in February 2018, and alleges in his lawsuit that he was wrongfully reduce out of the profits in the company’s IPO. Fenton claims his put his reputation on the line to defend DMG from an SEC investigation into attainable bribery of Chinese officials.
He also says he lost faith in founders Dan Mintz, Wu Bing, and Peter Xiao, concluding that they have been engaged in risky borrowing against company stock to finance the acquire of a $30 million jet as well as a $20 million mansion in Beverly Hills, Calif. He also alleges that the founders have run the company in to the ground.
The counterclaim accuses Fenton of sloppy business practices, including failing to execute sufficient due diligence or sustain suitable business records. “He either was unable or unwilling to carry out even the most simple managerial tasks,” the suit alleges.
The suit also accuses Fenton of claiming credit for others’ work.
The suit states that Fenton, in 2016, expense the company millions in damages on a deal to make live shows in China featuring the Transformers characters. DMG alleges that the shows have been delayed, and that Fenton’s production companion, S2BN, permitted its licensing deal with Hasbro to expire. The shows had been under no circumstances created.
“Fenton was driven by his own ego and need for personal glorification in the public eye; in order to cultivate the persona of a ‘player,’ his priority was having a deal ‘done,’ rather than seeking out for the most effective interest of DMG CC,” the suit alleges.
The suit also accuses Fenton of creating misstatements towards the Academy of Motion Picture Arts and Sciences so that you can acquire admission, and that he used his membership “for his personal personal acquire as opposed to for the advantage of DMG CC.”
The suit accuses Fenton of fraud, breach of fiduciary duty, and negligence, and seeks $30 million in damages.
Fenton’s attorney, John R. Baldivia, issued this response:
“We discover it intriguing that our client, who was accountable for placing with each other the deals for each ‘Iron Man 3’ and DMG’s ownership of Valiant (also as quite a few other prosperous endeavors that DMG now brags about) is now around the receiving end of a cross-complaint concerning his efficiency as a former DMG employee. As we have mentioned prior to, we'll allow the information to speak for the truth about DMG’s actions, as well as the actions of our client.”
A DMG spokesperson shot back: “Once once again, Fenton is trying to take credit for work he didn’t do. He made a mess of those deals, which other folks had to clean up.”