On Friday, SMALLVILLE creators/exec producers Miles Millar and Alfred Gough and series co-producer Tollin/Robbins Prods. filed suit against Warner Bros. TV and the CW, according to THE HOLLYWOOD REPORTER . The producers allege breach of contract and fiduciary duty. The suit claims that when WBTV brokered license fee deals with its WB and the CW TV stations they were far below market value.
The suit also claims that Warner Bros.’s foreign market deals lumped SMALLVILLE with lesser performing series, giving poorer performing WBTV shows a bigger chunk of the money. In addition, the producers allege WB wrongly withheld $3.3 million in foreign taxes, misreported production costs as high as $4 million and did not go after or report Canadian tax credits. When the producers went to audit the books, Warners stopped their efforts.