CBS/Fox Co., a home video distributor, claims in a lawsuit that it has lost millions of dollars in potential profit because MGM/UA unfairly manipulated a video distribution agreement.
In one instance, CBS/Fox says it ended up distributing the relatively poor-performing MGM/UA film "Captive Hearts" when it could have picked up "Spaceballs," a 1987 Mel Brooks film that grossed about $200 million--nearly six times more than "Captive."
An MGM/UA spokeswoman said the company does not comment on pending litigation. CBS/Fox is seeking, among other things, at least $50 million in damages and another $50 million in profit it claims MGM/UA made by breaching the distribution agreement.
The lawsuit, which was filed in U.S. District Court in New York, stems from an agreement struck eight years ago between the corporate ancestors of CBS/Fox and MGM/UA.