Thursday, October 20, 2011

Fraud claim thrown out in 'Happy Days' lawsuit


Fraud claim thrown out in 'Happy Days' lawsuit

A California judge Wednesday threw out a claim by cast members of the hit television show "Happy Days" that CBS committed fraud by not paying them for merchandising sales.
Los Angeles Superior Court Judge Elizabeth Allen White ruled in favor of CBS on the fraud claim, meaning the case will proceed only with a breach of contract suit. The cast had sued CBS for $10 million, alleging fraud.
The decision means the actors cannot receive punitive damages at the trial, which is scheduled for June 26, 2012.
The actors claim they never received revenue statements related to merchandising, and that CBS intentionally never intended to pay them anyway.
"The exact details of this alleged promise to provide periodic revenue statements when merchandising revenue had been generated have not been pled with the requisite level of specificity required, such as, who said exactly what to whom and they those representations were known to be false when made," according to the court ruling.
In a statement, a spokesperson for the CBS Consumer Products Division said, "We are thrilled that the court has thrown out all claims for punitive damages and significantly narrowed this to a case of contract interpretation."
Jon Pfeiffer, attorney for the actors, told CNN they were disappointed. "But we intend to press forward with the lawsuit. If we can't punish the defendants, we certainly intend to expose their practices," he said

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