ABC Sues for $5 Million as Accusations Fly About 'Mega Soap Fraud' THR
“No soap opera lawsuit would be complete without a counterclaim,” The Hollywood Reporter’s Hollywood, Esq., notes, reporting that ABC has filed its own legal claims against Prospect Park Network. The network is claiming the producer failed to make licensing payments.
The lawsuit is a reaction to Prospect Park’s $95 million lawsuit that alleges ABC committed a “mega soap” fraud on “One Life to Live” and “All My Children,” the story notes.
Prospect Park, which licensed the shows from ABC two years ago, filed for Chapter 11 bankruptcy earlier this week, listing ABC as its top creditor. In the meantime, Prospect Park continues to pursue a lawsuit that claims ABC tried to sabotage its relaunch of the soaps by borrowing characters to kill them off or to create a “mega soap,” the story reports.
“According to ABC's cross-complaint filed in L.A. Superior Court ... Prospect Park made licensing payments for the months of April, May and June of 2013, but only for ‘All My Children’ the next two months and then nothing for either series thereafter,” the story says.
The report adds: "ABC says the series fee for the first season alone was $8.5 million. Over the term of the license agreement, the money payable to ABC from Prospect Park was expected to exceed $145 million plus profit participation and merchandise distribution fees.
"For now, ABC says it has suffered breach-of-contract damages of at least $5 million."