Home / Business and Economy / Pulse Films Founders Claim $20M Owed by Vice Media
Pulse Films Founders Claim $20M Owed by Vice Media
22 Sep
Summary
- Founders allege Vice Media owes over $20 million from a 2021 studio sale.
- Vice allegedly misled founders to waive rights by falsely claiming solvency.
- A judge denied a pre-lawsuit discovery request as overly burdensome.
Thomas Benski and Marisa Clifford, founders of Pulse Films, assert that Vice Media owes them $20.43 million. This claim stems from Vice Media's 2021 acquisition of Pulse Films, which increased Vice's ownership to 100%.
The founders received an initial cash payment and a secured loan note for the remaining amount. However, Vice Media reportedly missed significant payments starting in September 2022, leaving a debt of over $20 million. Benski and Clifford allege Vice fraudulently promised solvency and a forthcoming sale to induce them into waiving their rights to force a sale.
They claim Vice was actually in "financially distressed" condition, a state that preceded Vice Media's Chapter 11 bankruptcy filing the following year. While no lawsuit has been filed, a recent pre-action discovery motion by the founders was denied by a London High Court judge. The judge cited the request's excessive burden on Pulse Films, estimating compliance costs over £440,000 and involving extensive document review.
