Ann Carli, the producer of the 2002 teen movie Crossroads, has filed a lawsuit against Sony Music Entertainment over millions of dollars in unpaid profits. Carli claims she came up with the idea for the film, which starred Britney Spears in her first leading role.
According to the lawsuit, Carli not only created the concept but also assembled the creative team, including writer Shonda Rhimes and director Tamra Davis, and pitched the project to the original film company, Filmco. Her contract reportedly included a fixed producer fee of $300,000 and a promise to pay her 10% of the net profits from the film.
Carli says she never received any payments from Sony or its predecessor companies for over 20 years. She initially assumed the film might not have been profitable, which could explain why she did not get paid. However, when Sony announced plans to re-release the movie in September 2023 to coincide with Britney Spears’ memoir, Carli requested a detailed financial statement to check whether she was owed any profits.
Disputed Accounting and Alleged Losses
When Carli finally received the financial statement, it reportedly showed that the movie had “net losses” of nearly $50 million. This figure was surprising because the film cost around $11 million to make and grossed over $60 million at the box office. The lawsuit claims that Sony’s accounting included large, unexplained charges that made the film appear unprofitable, despite its clear box office success.
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Carli also alleges that other participants, including Shonda Rhimes, received their profit shares. Rhimes reportedly told her that she had been paid enough from the film to make a down payment on a home in the Hollywood Hills. This, the lawsuit claims, shows that the producer was unfairly excluded from her profit participation, even though she was instrumental in bringing the project to life.
The lawsuit accuses Sony of breach of contract and fraud and demands a full accounting of the movie’s earnings. According to the claims, the unpaid profits, including interest accrued over 23 years, could total around $36 million. Carli also points to the recent Netflix streaming deal and DVD sales as additional sources of profits that she believes were never shared with her.
Long Legal Battle Over Profit Participation
The lawsuit, filed in New York Supreme Court, emphasizes that Carli’s involvement in Crossroads was essential from the start. She asserts that the film was created as a starring vehicle for Britney Spears, and that she played a key role in putting the project together, including gathering the writer and director and pitching it to the production company.
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Carli’s legal team says the missing payments were likely overlooked during several corporate mergers, including Filmco’s acquisition by BMG and the later formation of Sony BMG. Despite these corporate changes, Carli claims she has waited decades to receive her share of the profits.
The case highlights how film accounting practices can sometimes hide profits from those who are legally entitled to them. The lawsuit details Carli’s repeated attempts to obtain a clear accounting of the movie’s revenues and expenses, showing significant discrepancies between the reported losses and the actual earnings.
Carli’s claims also include statements from Sony Music’s former Executive Vice President of Business Affairs, Dan Zucker, who acknowledged that Carli’s participation may have been “inadvertently overlooked” amid the multiple mergers and restructurings.
The legal action seeks both the money owed and interest for the long delay in payments. Carli is also requesting a detailed accounting of the film’s finances, including revenues from theatrical release, home video sales, and streaming deals. Sony and Carli’s legal team have been contacted for comment. The case serves as an example of the challenges producers can face when dealing with large entertainment companies and complex contracts.
