Directors Guild Sues Movie Company: Pathe Communications,...

Directors Guild Sues Movie Company: Pathe Communications, which controls the Cannon Group movie company, was sued by the Directors Guild of America for allegedly failing to pay contributions to employee pension and health plans. A federal lawsuit seeking the unpaid contributions, interest and damages asserts that Pathe was obligated to make the payments under a 1981 agreement with the DGA, but has failed to do so since 1982. DGA seeks the injunctive relief under the Employees’ Retirement Income Security Act of 1974. The suit seeks 12% interest on the allegedly delinquent payments plus liquidated damages of 20% on unpaid amounts. (Court Case No. 90-4990. Filed Sept. 18, 1990)