Gangs of London producers sue Vice Media for more than $20m
The founders of Pulse Films, the production company behind Gangs of London, are suing Vice Media for more than $20 million over the sale of their stake in the business.
Thomas Benski and Marisa Clifford allege Vice failed to pay money owed under a December 2021 buyout deal, according to Deadline. The pair now run Magna Studios. Pulse Films' intellectual property, including Gangs of London, now sits under Vice Studios.
Vice took a majority stake in Pulse in March 2016. Pulse had been founded in 2005, according to reporting at the time. In connection with that 2016 deal, Vice entered a shareholders' agreement that gave Benski and Clifford a put option, a right to require Vice to buy their remaining 22% holding.
Shane Smith was chief executive of Vice Media when the 2016 deal was struck. Financial details of that majority purchase were not disclosed at the time, according to The Hollywood Reporter.
The dispute centres on what happened next. Vice bought out Benski and Clifford's remaining 22% shareholding in December 2021. The price was $10 million in cash plus $43.24 million in loan notes, formal IOUs to be paid at a later date. Filings reported by Variety show the pair resigned as directors of Pulse in December 2021. They exited the company in 2022.
Benski and Clifford allege Vice failed to pay loan notes totalling $20.4 million, in breach of their sale agreement. They also allege former Vice executives made fraudulent misrepresentations about Vice's financial health and a failed sale to Antenna Group. They say those statements persuaded them not to exercise contractual rights.
Vice Group entered Chapter 11 bankruptcy in May 2023, a US court process that lets a company keep operating while it restructures its debts. Three months later, Vice was acquired after a bankruptcy auction by a consortium of former lenders led by Fortress Investment Group, Soros Fund Management and Monroe Capital.
Before filing a full claim, Benski and Clifford sought a pre-action disclosure application, a court request to obtain documents early. UK High Court Judge Peter MacDonald Eggers dismissed that application. He did not reach conclusions on the merits of their case. The application named four defendants, including Pulse Films and former Vice Media chief executive Nancy Dubuc.
Vice Media said the allegations are baseless and groundless. It said it intends to vigorously defend any claim.
