Court scandal: Disney accused of Hollywood tricks to licence films from Fox

TSG Entertainment, which has invested more than $3 billion in 140 Fox films including "Avatar: The Way of Water" and "Shape of Water," has accused Disney of using Hollywood accounting tricks to rip it off hundreds of millions of dollars.

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The financial group alleges that Disney engaged in "self-distribution" by diverting Fox films from the lucrative HBO licence to its Disney+ and Hulu platforms. The lawsuit also alleges that Fox made "lucrative" deals by licensing its films to cable channel FX.

TSG alleges that Disney tried to prop up its market value and the pay packages of CEOs Bob Iger and Bob Chapek while sacrificing TSG's interests.

The allegations echo those of Scarlett Johansson, who filed her own lawsuit against Disney over the release of "Black Widow" in 2021. Johansson later settled her case out of court, claiming that Disney simultaneously released the film in theatres and on Disney+ to grow the platform, taking away the benefit of an exclusive film release.

Johansson also claimed that Eiger and Chapek personally benefited by taking steps to inflate the market value at her expense. TSG and Johansson are using the same attorney, John Berlinski of Bird Marella.

TSG began its relationship with Fox in 2012. Disney acquired Fox in 2019. Since then, the lawsuit alleges that Disney fired Fox employees responsible for marketing and distribution of TSG-funded films, resulting in significant box office underperformance on those films.

Disney has not yet responded or commented.