‘Passion’ Revenue Lawsuit Is Settled

Regal Entertainment Group on Tuesday reached a settlement with Mel Gibson’s Icon Productions Inc. over box-office receipts Icon alleged the giant theater chain owed it from showing Gibson’s hit film “The Passion of the Christ.”

No terms were disclosed.

According to a Securities and Exchange Commission document filed by Regal, the lawsuit settlement will reduce the company’s previously reported net income for the fourth quarter by $8.3 million. Per-share earnings will fall to 16 cents from 21 cents, Regal said.

A spokesman for Icon said, “To believe that the settlement is only $8.3 million doesn’t tell the whole story. Icon is extremely pleased and feels vindicated by the results.”

Santa Monica-based Icon is Gibson’s longtime production company, owned with partner Bruce Davey.

Gibson directed and financed “The Passion,” which chronicles Christ’s last hours, distributing the movie through independent Newmarket Films. The movie grossed $611.4 million worldwide, including $370.3 million in the U.S. and Canada.

In the June 7 suit, filed in Los Angeles County Superior Court, Icon alleged that Regal had backed out of an agreement to pay it “studio terms” -- 55% of box-office revenue -- offering 34% instead. The company said it was penalized for being independent rather than one of Hollywood’s major studios, which have ongoing relationships and enjoy more clout with exhibitors.

Dick Westerling, senior vice president of marketing for Regal, said the company would not comment beyond the SEC filing.

The industry’s largest exhibitor, Regal operates 6,273 screens in 558 locations nationwide, including the Edwards and United Artists theaters. Billionaire Philip Anschutz controls the Centennial, Colo.-based company.

“The Passion Recut,” a shortened version of the original with some of the more violent footage removed, will be released by Newmarket on March 11 in more than 700 theaters.