AMC will pay $120 million to settle 'Walking Dead' profits lawsuit

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Set us as preferred AMC Global Media, the network behind the storied zombie franchise “The Walking Dead,” has settled a years-long profits lawsuit from the show’s creator and producers.The New York City-based company disclosed the agreement Tuesday in a Securities and Exchange Commission filing, describing it as resolution of “claims for breach of contract.” It will pay “The Walking Dead” creator Robert Kirkman and producers Glen Mazzara, David Alpert, Charles Eglee and Gale Anne Hurd $85 million by Sept.18 and another $35 million by Jan.

31.The second payment will be treated as an advance against future profit participation, meaning the producers keep a stake in the franchise rather than selling it back.

AMC said it will take a one-time $85-million charge in the September quarter.In a joint statement, the two sides announced the “amicable resolution of all their remaining claims and litigation” tied to the franchise and said they look forward to sharing in its continued success.The producers filed the complaint in November 2022 in Los Angeles Superior Court; it moved to federal court the following month over jurisdictional issues.The suit centered on profit participation rights for the original “Walking Dead” series and its first spin-off, “Fear the Walking Dead.” A federal judge rejected AMC’s bid to have the case thrown out in 2024, and it was set to go to trial in October.

Hollywood Inc.Netflix will stream all 371 episodes of the ‘Walking Dead’ universe worldwide under a five-year, $500-million deal — but it loses its U.S.

exclusive.At issue was AMC’s definition of modified adjusted gross receipts, or MAGR — the formula that determines what a show’s profit participants are actually owed.“Even though AMC exploited Plaintiffs’ ideas and services to make billions from ‘The Wal...