New Line Is Sued Over ‘Rings’ Profit

Time Warner Inc.’s New Line Cinema was sued by director Peter Jackson’s production company over claims that New Line failed to properly distribute profit from the first movie in the “Lord of the Rings” trilogy.

Jackson’s Wingnut Films Ltd. claims that New Line failed to properly account for and pay Wingnut for its share of profits from ventures such as the “Fellowship of the Ring” DVD release and video games and also failed to negotiate license agreements “on an arms-length, nondiscriminatory basis,” the suit filed in U.S. District Court in Los Angeles said.

Spokeswomen for New Line and Time Warner couldn’t be reached for comment.