Lionsgate is facing a hurdle currently due to a lawsuit, according to The Hollywood Reporter. According to the site, the studio is being sued by American International Industries, a beauty company based in Los Angeles. The company is suing the studio for $10 million due to claims of being misled with a deal to create a tie-in nail polish.
According to the site, the suit, which was filed Wednesday in Los Angeles Superior Court, includes the company’s claims of closing a deal with Lionsgate to create a version of its “China Glaze” nail polish for the film “The Hunger Games.” The company had also signed on to contribute to the film’s campaign. However, after the contract was signed by Lionsgate heads, Lionsgate then told the press that the nail polish deal was not on. The studio also asked the American International Industries to announce that the two businesses were only discussing a “possible” deal. After the beauty company refused to say the statement, a Lionsgate attorney then sent the company an email on Nov. 17, stating that Lionsgate was “terminating” the contract.
American International Industries said it bought millions of dollars in nail polish materials and also spent a large amount of time in labor.
You can read more about the suit at The Hollywood Reporter.