'Narcos' director sues production partner, alleging millions owed in hidden profits

There could be a real crime behind Netflix's 'Narcos'

Director and producer José Padilha ("Robocop") has officially sued his producing partner Eric Newman over allegations that Newman is hiding millions of dollars in profits from the critically acclaimed series. Padilha alleged in the lawsuit that Newman conceals income from Gaumont Television, which violates their profit-sharing agreement.

Newman's production company, Spahn Ranch, was supposed to share "Narcos" reports and recipes with Padilha's production company, Cold Mountain. The contract states that "each party receives an equal amount of gross proceeds at all times". However, Padilha alleges that Newman is hiding money because the contract is structured so that the amount paid to Newman by Gaumont is not transparent.

“Despite willingly accepting the trust placed in him by the plaintiffs, and in breach of that relationship of trust, Newman (both individually and on behalf of Spahn Ranch) caused the income of Narcos be paid solely and directly to Defendants, without making Plaintiffs aware that such income from Narcos had been received by Defendants,” reads the lawsuit filed in Los Angeles County Superior Court, via https://www.plaintiffs.com/ Related Related

Padilha alleges Newman received several million in undeclared earnings. The lawsuit refers to an audit of Gaumont by Newman on an unspecified date which was not counted in the profits paid to Padilha.

“Because they were partners, plaintiffs relied on defendants to be loyal, not to commit themselves, to take no action that might interfere with the claimants' right to receive their share of all income, revenue and proceeds from the operation of the series, and to timely, accurately and completely account for all income, revenue and proceeds generated and expenses incurred from the operation of the series,” the complaint reads.

Newman has since refused to turn over documents related to "Narcos" earnings, according to the suit. THR reported an anonymous source revealing that Padilha is in arbitration with Gaumont, who is not named as a defendant in this lawsuit.

TV executive Katie O'Connell Marsh also sued Gaumont in 2018 for breach of contract, alleging she didn't collect money from her share of 'Narcos' gross receipts in addition to others Gaumont emissions, notably "Hannibal". Hemlock Grove” and “F is for Family”. A trial is expected to begin in December.

“Narcos” previously featured Pedro Pascal and Diego Luna among its ensemble cast. French production company Gaumont is also behind "Lupin" and "Barbarians", and recently with Paramount+.

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