Netflix Hit With $105M Suit After Nicolas Cage Movie Disappears from LA Offices

(Photo by Weston Hancock / SOPA Images/Sipa USA)(Sipa via AP Images)

A $105 million lawsuit was filed against Netflix after an unreleased film starring Nicolas Cage was allegedly stolen from the streaming giant’s Los Angeles office after the company requested a working cut while considering a distribution deal.

The complaint, filed Thursday in California federal court by writer-producer Simon Afram and his company Op-Fortitude, accuses Netflix of mishandling an unencrypted master copy of Fortitude.

According to the lawsuit, ten days after a producer hand-delivered a hard drive containing the film, a World War II espionage thriller, to Netflix’s Sunset Bronson Studios offices on June 15, Sean Berney, Netflix’s head of film acquisitions, informed the filmmakers of the theft in an email.

“This is a first for us. Unfortunately, someone stole a good amount of drives from our office desks this past week. We’ve been working through this with out security teams to no luck. Our piracy teams are on high alert with the breach and will monitor,” he said on June 25.

The filmmakers argue the missing master copy has significantly damaged the film’s value, claiming any future distributor would need to be informed that an unencrypted version of the movie was stolen before release.

They contend that disclosure could affect negotiations, insurance coverage, marketing plans and increase the risk of an online leak, forcing them to halt discussions with interested domestic and international buyers.

Netflix, however, rejected responsibility for the loss. In a statement to The Hollywood Reporter, a company spokesperson said:

Netflix disputes any claim that it bears the risk of loss for a film delivered without the proper industry-standard safeguards. While we do not own the rights to Fortitude, we take content security seriously and have taken extra measures to support the filmmaker and his team. This includes conducting a thorough investigation and offering to monitor known piracy sites for any unauthorized distribution or sale.

The lawsuit also alleges Netflix refused to disclose whether it reported the theft to police and later declined the filmmakers’ request to involve the Los Angeles Police Department after they filed their own report.

Netflix, however, said it withheld details because lawyers representing Afram demanded $165 million in what it described as a “hostile attempt to extort money” instead of attempting to “work with us in good faith.”

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