Paramount, DreamWorks Hogged 'Dreamgirls' Profits: Suit

Law360, New York (November 29, 2011, 10:56 PM EST) -- Paramount Pictures Corp. and its former subsidiary DreamWorks Studios LLC were sued Tuesday by an equity partner accusing the studios of hogging profits from 29 films including “Dreamgirls” and “Blades of Glory,” which the investment firm spent $375 million to help finance.

In its complaint filed in California court, Melrose Investors 2 LP claims it had not seen a dollar of profit from the films, which grossed $7 billion, because of the studios’ allegedly underhanded reporting practices in violation of their agreement.

Melrose claims the studios...
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