Per the complaint filed in California, the two entered an agreement to “share equally 50%/50% in all revenue, income, and proceeds of any nature (with certain carved-out exceptions) that either might receive based on or connected with the Series.” Now, Padilha claims Newman has been bringing in “several millions of dollars in revenues” from Narcos without reporting them to Padilha, cutting him out of his fifty percent share.
The complaint reads:
“Despite Plaintiffs’ efforts to obtain information and documents from Defendants concerning their receipt of revenues, income, and proceeds arising from or connected with Narcos, Defendants have steadfastly refused to meaningfully communicate with Plaintiffs or otherwise provide Plaintiffs with any information or documents concerning the revenues, income, and proceeds Defendants have received based on Narcos and have concealed all information from Plaintiffs concerning payments Defendants have received from the exploitation and huge success of Narcos.”
When the two first began their working relationship, they intended on starting a joint company, where the producers would report and equally share all revenue. However, due to prior business engagements, they settled on reporting all income from Narcos through each of their affiliate companies, Cold Mountain and Spahn Ranch.
Padilha is suing Newman for an alleged breach of contract and of fiduciary duty, seeking compensatory damages for any lost profits and punitive damages for the “failure to truthfully account to and pay Plaintiffs their 50% share of all revenues, income, and proceeds based on and arising from the exploitation of Narcos.”
Newman is known for his work as a producer on several Netflix projects including Zack Snyder’s Rebel Moon, Bright, and Hemlock Grove. In addition to Narcos, Newman produced Padilha’s 2014 remake of Robocop.