LA-based Mike Young Productions Inc. sues a holding company it claims blocked its attempt to take over the US arm of insolvent French firm Moonscoop SA.
Los Angeles-based Mike Young Productions Inc. (MYPI) is suing a holding company it claims blocked its attempt to take over the US arm of insolvent French firm Moonscoop SA, according to a report by C21Media.
Mike Young, CEO of LA-based Moonscoop LLC, is reportedly taking legal action against Moonscoop US Holdings via MYPI after a failed buy-out attempt.
Moonscoop US Holdings, a subsidiary of Paris-based animation producer-distributor Moonscoop SA, holds a 51 percent stake in Moonscoop LLC (formerly known as Mike Young Productions), while MYPI holds the remaining 49 percent. Moonscoop SA rebranded Mike Young Productions as Moonscoop LLC in 2009 after taking a majority stake in the company in 2005.
MYPI made an offer to buy out Moonscoop US Holdings’ 51 percent share in Moonscoop LLC prior to Moonscoop SA entering administration earlier this year, but was refused.
“Moonscoop US Holdings has taken no steps to ensure that MYPI’s rights under the operating agreement are fulfilled, but rather has acted to benefit Moonscoop SA at the expense of MYPI,” the lawsuit reads.
MYPI is suing for $5 million, claiming “damages for breach of contract, breach of faith, breach of fiduciary duty, intentional interference with prospective economic advantage and violation of business and professions codes.” MYPI also wants Moonscoop US Holdings prohibited from “interfering with its rights under the operating agreement.”
Young also said he was unaware of Moonscoop SA’s financial troubles until the news broke that it had entered administration earlier this year, adding that Moonscoop SA becoming insolvent has caused problems for Moonscoop LLC, as the two companies were coproducing a project at the time.
Moonscoop LLC also holds an 84 percent stake in Kabillion, having bought out Belgian animation house Studio 100′s stake in July last year. US-based Remix Entertainment holds a minority interest.
Moonscoop LLC’s IP includes the children’s series Chloe’s Closet, Dive Olly Dive! and Pet Alien, while its production slate includes Lalaloopsy, Gunk Aliens and It’s Archie, a 2D cartoon featuring characters from the original Archie comics as tweens.