(2016) Tags: Lionsgate
QED Holdings, LLC v. William H. Block
In May 2012, Defendant Block and his partners agreed to sell virtually all of the assets of (Old) QED and its related entities to Media Content Capital in exchange for a payment of $25 million and a 25% equity interest in the resulting new company, QED Holdings, LLC (with MCC owning the other 75%). Among other things, QED Holdings, LLC, the Plaintiff here, received all rights, title and interest to all of Old QED’s motion pictures, including those produced, in progress, or in development.
While Block served as CEO of QED, i.e., after Block had executed the Contribution Agreement (including on behalf of Old QED), he, unbeknownst to the Company and in violation of his contractual and fiduciary duties to the Company, Block was actively working to wrest ownership and control of Dirty Grandpa from QED and into entities that he solely owned and controlled.
Block transferred Dirty Grandpa from a QED entity to a Block-owned entity without authorization, thereby stealing the asset. QED is pursuing the return of all rights to Dirty Grandpa.
Judgment: All claims for relief in this matter are dismissed with prejudice. Each party will bear its own attorneys fees and costs.