Suit Filed Over Troubled ‘Jackson Family’ Benefit

Emmy-winning producer Gary Smith filed a lawsuit Thursday against Jackson family members charging fraud and breach of contract in connection with the financially troubled “Jackson Family Honors” musical benefit.

The 30-page complaint filed on behalf of Smith-Hemion Productions Inc. in Los Angeles County Superior Court alleges that Jackson family-affiliated firms refused to pay an estimated $2 million in outstanding bills and misrepresented information regarding past debts that allegedly jeopardized the fiscal state of the production. Ten family members are named individually as defendants, including superstar Michael Jackson, as well as the family’s Jackson Communications Inc. and Jackson Jubilee, plus Transworld International, the firm that negotiated the foreign broadcast rights.

The Jackson firms, the complaint said, are “mere shell corporations” and that they and their shareholders are responsible for “the commingling of personal assets and funds.”

“Never in my entire career have I had to deal with such an unprofessional mess as this,” said Smith, producer of the telecast who along his partner Dwight Hemion has won five Emmys since 1962.

“The Jacksons asked me to hire people to work on their show and now, six weeks later, they refuse to pay them. And frankly, they’ve been very arrogant about it. This is an extremely difficult step for me to take, but the Jacksons have left me no choice but to sue.”

Smith’s suit alleges that the Jacksons pledged the same funds raised from ticket proceeds and foreign broadcast fees to at least two separate entities. It also alleges that members of the Jackson entourage charged $69,000 in expenditures for wardrobe and room service at the MGM Grand Hotel in Las Vegas where the Feb. 19 musical benefit was taped to be aired three days later on NBC-TV.

Jermaine Jackson, executive producer of the show and president of Jackson Communications Inc., said he had not seen a copy of the suit, but denied the allegations.

“For Gary Smith to sue us is unjust and unfair,” Jackson said. “For him to say we are arrogant is very unprofessional. But what’s new? It’s just another dagger being thrown at the Jacksons in public.”

The suit also alleges that Michael Jackson has failed to pay Smith-Hemion $110,000 for tickets he purchased and claims that the event’s financial problems stem in part from the superstar’s refusal to appear at the special’s originally scheduled date of Dec. 11 in Atlantic City.

The show was postponed after Jackson fled to Europe in November to reportedly treat a drug addiction that he said stemmed in part from a 13-year-old’s allegations of sexual molestation.

A series of complications resulted, including the loss of corporate sponsorships, debts incurred by postponing and moving the event to Las Vegas and slow ticket sales. Since the event, financial disputes over possible ticket refunds have tied up concert proceeds and revenues from foreign broadcast fees are still forthcoming.

Representatives for Michael and Janet Jackson said the two superstars had nothing to do with the event’s finances.