Writers Guild Expands Suit Against Agencies With New Fraud Allegations

The Writers Guild of America has bulked up its lawsuit with additional fraud allegations against Hollywood’s four biggest talent agencies.

The WGA amended its suit Monday in Los Angeles Superior Court with the claim that CAA, Wme, UTA and ICM partners have engaged “constructive fraud” by allegedly placing their own interests ahead of their clients and by concealing facts about how packaging works.

The amended complaint alleges “failure of a fiduciary to disclose a material fact to his principal that might affect the fiduciary’s motives or the principal’s decision constitutes constructive fraud, regardless of whether the fiduciary acted with fraudulent intent.”

The amended complaint also alleged that agencies are operating in a conflicted position because their interests in negotiating packaging fees for themselves are at odds with the interests of writer clients.

The Association of Talent Agents, which serves as the negotiating arm for the agencies, brushed off the amended complaint.
See full article at Variety - Film News »

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