AMC will pay $120 million to settle ‘Walking Dead’ profits lawsuit
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AMC Global Media, the network behind the storied zombie franchise “The Walking Dead,” has settled a years-long profits lawsuit from the show’s creator and producers.
The New York City-based company disclosed the agreement Tuesday in a Securities and Exchange Commission filing, describing it as resolution of “claims for breach of contract.” It will pay “The Walking Dead” creator Robert Kirkman and producers Glen Mazzara, David Alpert, Charles Eglee and Gale Anne Hurd $85 million by Sept. 18 and another $35 million by Jan. 31. The second payment will be treated as an advance against future profit participation, meaning the producers keep a stake in the franchise rather than selling it back. AMC said it will take a one-time $85-million charge in the September quarter.
In a joint statement, the two sides announced the “amicable resolution of all their remaining claims and litigation” tied to the franchise and said they look forward to sharing in its continued success.
The producers filed the complaint in November 2022 in Los Angeles Superior Court; it moved to federal court the following month over jurisdictional issues. The suit centered on profit participation rights for the original “Walking Dead” series and its first spin-off, “Fear the Walking Dead.” A federal judge rejected AMC’s bid to have the case thrown out in 2024, and it was set to go to trial in October.
Netflix will stream all 371 episodes of the ‘Walking Dead’ universe worldwide under a five-year, $500-million deal — but it loses its U.S. exclusive.
At issue was AMC’s definition of modified adjusted gross receipts, or MAGR — the formula that determines what a show’s profit participants are actually owed. “Even though AMC exploited Plaintiffs’ ideas and services to make billions from ‘The Walking Dead’ franchise, AMC issued a MAGR definition that, in its original form, would not have paid out a single dollar in profit participation to Plaintiffs,” the complaint reads.
The 2022 suit followed AMC’s $200-million settlement a year earlier with former showrunner Frank Darabont and his agency, CAA, in a case first filed in 2013. The producers argued that “most favored nations” clauses in their contracts entitled them to the same terms Darabont received.
The dispute traces back to 2009, when AMC contracted with Kirkman for the TV rights to his comic book. The producers’ deals promised them a percentage of profits as AMC would later define them — but the network did not issue that definition until March 2011, after the first season had already been a hit.
“The Walking Dead” premiered on AMC in 2010, introducing audiences to the high-stakes world of a zombie apocalypse, and ran for 11 seasons. It spawned six spin-offs and became one of AMC’s most influential shows. The franchise remains the company’s most valuable asset. In July, AMC and Netflix inked a new $500-million co-exclusive deal for the streaming rights. Other popular programs from the network include “Mad Men” and “Breaking Bad.”
The New York-based company wants to emphasize production instead of its traditional TV business.
AMC still faces litigation over the franchise. Last year, “Fear the Walking Dead” co-creator Dave Erickson sued in California state court over his own profit payments. His complaint states that “AMC Studios has not paid Erickson a single dollar in profits,” while at least $49 million has gone to other participants on the series — a figure the filing suggests may be as high as $67 million.
