Angel Studios Faces Legal Challenges Amid Claims of Breach of Contract
Angel Studios, known for its distribution of the 2023 hit film, Sound of Freedom, is encountering legal troubles as the production company Slingshot has filed a lawsuit alleging breach of contract. This case highlights ongoing concerns about the treatment of smaller independent producers by larger entities within the industry.
Details of the Lawsuit
Slingshot, the team behind the Angel-supported animated series Young David and its complementary film, David, claims that Angel Studios failed to adhere to the terms of their Content Distribution Agreement (CDA). The lawsuit was filed in a Utah court in March, outlining that the studio’s actions disrupted the marketing and development of David, which is expected to premiere during the Thanksgiving season this year. The agreement between Slingshot and Angel Studios was established in 2021, and since then, Angel has positioned the film as a significant project, declaring it as the “#1 crowdfunded media project in history” with nearly $50 million raised.
Allegations Against Angel Studios
Slingshot’s complaint details multiple instances where Angel allegedly breached their contractual obligations, including:
- Removing Slingshot’s branding from promotional materials for David and Young David.
- Making key decisions without obtaining necessary approvals from Slingshot.
- Releasing subpar dubbed versions of Young David internationally without consent.
- Refusing to pursue advantageous international distribution deals unless they also included other Angel properties.
The lawsuit asserts that Angel Studios has a pattern of breaching contracts with faith-based producers, claiming a “hostile takeover” mindset rather than fostering collaboration.
Response from Angel Studios
In light of these allegations, Neal Harmon, the CEO of Angel Studios, commented to Rolling Stone about the company’s upcoming projects, including the animated film The King of Kings, scheduled for release around Holy Week. He did not directly address the lawsuit or the accusations made by Slingshot. As legal developments unfold, Angel continues to attract investment for David, with crowdfunding efforts reportedly raising more than $55 million towards a target of $60 million.
Background on Angel Studios
Founded by the Harmon brothers, Angel Studios has positioned itself as a leading entity in faith-based entertainment. The company has gained notoriety for its crowdfunding business model, which notably facilitated the success of Sound of Freedom. Despite the film’s popularity among conservative audiences, it stirred controversy due to its portrayal of serious issues surrounding child trafficking and the contentious background of its real-life subject, Tim Ballard.
Previous Legal Complications
This current lawsuit is not the first legal issue Angel Studios has faced. The company previously lost a lawsuit related to The Chosen, a series that gained immense popularity. Production difficulties arose when the original arrangement resulted in restrictive financial terms for the creators. After disputes and third-party arbitration, Angel was ordered to pay $5 million for breaching its contract with the series’ producers.
Conclusion
The outcome of Slingshot’s lawsuit is yet to be determined, but it raises important questions regarding the dynamics between large production entities and independent creators. While Angel Studios continues to thrive within its niche, the ongoing legal challenges may impact its reputation and relations with future collaborators in the industry.