A year after he was highly praising the filmmaker in interviews, Israeli-born financier and producer Arnon Milchan is now suing writer/director Warren Beatty over the failure of their 2016 collaboration “Rules Don’t Apply” which grossed just $3.9 million worldwide from a $31 million budget.
Milchan’s company, Regency Entertainment, has filed suit in L.A. Superior Court against Beatty’s company, RatPac Entertainment and several other big-name financiers seeking $18 million as they claim the investors “breached their obligation to refund Regency’s P&A costs”.
Regency reportedly obtained guarantees from Beatty and others to cover the film’s P&A costs in the event they were not covered by the film’s grosses. They also invested a further $2.5 million into the production budget.
In November Regency submitted a shortfall notice to Beatty’s company and to the other investors. Beatty’s company was given ten days to refund Regency’s costs but has refused to pay according to the lawsuit.