files/pictures/picture-35.jpgYU-GI-OH! creators TV Tokyo Corporation and Nihon Ad Systems have filed suit in New York against the anime series' U.S. distributor 4Kids Ent., writes The Hollywood Reporter
. After an audit in 2010, TV Tokyo and Nihon claims they discovered questionable accounting over deals with stations and home entertainment distributors and improper royalty claims.
TV Tokyo and Nihon are owed 50% of gross income, after expenses.
TV Tokyo and Nihon claims that 4Kids conspired with Funimation Productions to hide over 45% of the income from home video sales. Funimation paid $1.3 million up front and close to $4 million in service fees, which TV Tokyo and Nihon were never informed of. Additionally, 4Kids made a deal with Majesco Sales Inc. to bring YU-GI-OH! episodes to Nintendo's Gameboy Advanced and then hid the deal from the creators.
TV Tokyo and Nihon are also questioning some of the expenses deducted, which include taxes, bank charges, insurance, style guide art costs, the audit and dubbing costs. They claim these expenses where 4Kids responsibility under the original agreement.
The parties met in February over the problems where TV Tokyo and Nihon presented an offer that 4Kids turned down. In March, after more talks, 4Kids paid $1 million to TV Tokyo and Nihon as a good faith gesture. On March 18, reps from TV Tokyo and Nihon came to New York to work out the final compensation, but 4Kids cancelled the meeting. This spurred the Japanese firms to cancel the contract and file the lawsuit.