DMG Entertainment has fired back against Chris Fenton, the former head of its motion picture group who filed a $30 million breach of contract suit in February. Get more data about https://variety.com/2019/biz/news/dmg-chris-fenton-counterclaim-1203186859/



Inside a counterclaim, DMG blasts Fenton as a disloyal employee who sophisticated his own interests at the company’s expense. The suit alleges that Fenton “cultivated his persona of a ‘player'” within the sector even although losing millions of dollars.



“Fenton was terminated for his poor overall performance, gross mismanagement, and fraud on the companies he served,” the counterclaim states.



Fenton departed in February 2018, and alleges in his lawsuit that he was wrongfully cut out on the profits in the company’s IPO. Fenton claims his put his reputation on the line to defend DMG from an SEC investigation into achievable bribery of Chinese officials.



He also says he lost faith in founders Dan Mintz, Wu Bing, and Peter Xiao, concluding that they were engaged in risky borrowing against company stock to finance the obtain of a $30 million jet plus a $20 million mansion in Beverly Hills, Calif. He also alleges that the founders have run the company into the ground.



The counterclaim accuses Fenton of sloppy business practices, including failing to carry out sufficient due diligence or sustain right business records. “He either was unable or unwilling to carry out even the most simple managerial tasks,” the suit alleges.



The suit also accuses Fenton of claiming credit for others’ work.



The suit states that Fenton, in 2016, price the company millions in damages on a deal to generate live shows in China featuring the Transformers characters. DMG alleges that the shows had been delayed, and that Fenton’s production companion, S2BN, permitted its licensing deal with Hasbro to expire. The shows have been never ever produced.



“Fenton was driven by his personal ego and want for personal glorification in the public eye; in order to cultivate the persona of a ‘player,’ his priority was receiving a deal ‘done,’ in lieu of seeking out for the ideal interest of DMG CC,” the suit alleges.



The suit also accuses Fenton of generating misstatements towards the Academy of Motion Picture Arts and Sciences in order to get admission, and that he used his membership “for his own personal achieve rather than for the advantage of DMG CC.”



The suit accuses Fenton of fraud, breach of fiduciary duty, and negligence, and seeks $30 million in damages.



Fenton’s attorney, John R. Baldivia, issued this response:



“We locate it interesting that our client, who was responsible for putting with each other the deals for each ‘Iron Man 3’ and DMG’s ownership of Valiant (at the same time as several other profitable endeavors that DMG now brags about) is now on the receiving end of a cross-complaint concerning his efficiency as a former DMG employee. As we have stated prior to, we are going to permit the information to speak towards the truth about DMG’s actions, at the same time as the actions of our client.”



A DMG spokesperson shot back: “Once once again, Fenton is wanting to take credit for work he didn’t do. He made a mess of those deals, which others had to clean up.”