Pulse Films' founders claim Vice owes them over $20 million after the 2021 sale.
The founders of Pulse Films, the production company behind the acclaimed series Gangs of London, have made a significant financial claim against Vice Media, alleging they are owed more than $20 million stemming from the sale of their studio. Thomas Benski and Marisa Clifford, who established Pulse Films in 2005, contend that Vice Media has yet to fulfill its financial obligations since acquiring a 22% stake in their company in 2021.
According to a report from Variety, Benski and Clifford claim that Vice continues to owe them approximately $20.43 million following the full acquisition of Pulse Films, which brought Vice's ownership to 100%. At the time of the transaction, the founders received $10 million in cash and a secured loan note for the remaining amount, totaling $53.24 million for their stake. However, Vice allegedly defaulted on this payment, missing an installment of $5 million in September 2022, which initiated an unresolved debt exceeding $20 million.
The acquisition of Pulse Films was intended to bolster Vice's content creation capabilities, particularly in producing high-quality television series. Benski and Clifford's ownership stake was a valuable part of Pulse's overall value. Following the sale, they made arrangements for payments through secured notes, indicating a shared understanding of the company's net worth and financial status.
However, conflict arose when the founders claimed they were misled regarding the company’s financial health. They allege that Vice falsely assured them of the corporation’s solvency and imminent profit through a substantial sale, a claim they argue allows them the right to trigger a sale of Pulse to reclaim their owed funds.
Benski and Clifford have yet to file a lawsuit but attempted to gather pre-action discovery to substantiate their claims. Recently, a judge in London's High Court denied their motion for pre-action discovery, stating their request would place a “disproportionately heavy burden” on Pulse Films. The request was estimated to cost over £440,000 and necessitated the review of more than 264,000 documents.
In the ruling, the judge highlighted that determining evidence of dishonesty would be more appropriate for a court to assess once a formal lawsuit was initiated. The ongoing disputes have drawn considerable attention, especially as they occur in the wake of Vice Media's Chapter 11 bankruptcy filing the subsequent year.
The financial struggle between Pulse Films' founders and Vice Media signals potential challenges for both entities in the entertainment landscape. As Vice has faced significant financial issues after the acquisition, it may affect future opportunities for Pulse Films, which recently gained acclaim through projects like Gangs of London. While the current legal dispute unfolds, the financial standing of both parties might influence their direction in the industry as they navigate this crisis.
Benski and Clifford's claims highlight the complexities of financial agreements in media acquisitions and the need for transparency between business partners. Their situation may resonate with other production companies contemplating similar ventures in a volatile market.
While the outcome of this dispute remains uncertain, it underscores the growing scrutiny around corporate dealings in the entertainment sector. For audiences following Gangs of London, the resolution of this financial squabble may have implications for the show's future and for newly greenlit projects under the Pulse Films banner. As the founders pursue their claims against Vice, the wider industry will be watching closely, particularly as these developments could reflect broader financial stability concerns within media companies.
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