A former investor in “The Chosen,” a popular streaming series about the life of Jesus, has filed a class-action lawsuit saying he and more than 16,000 other shareholders were cashed out of the company without fair compensation.
Read more ‘Hoot and shoot’: U.S. destroying thousands of barred owls in scheme to save spotted owls
Christopher Garabedian, a former biopharma executive who invested $300,000 in a predecessor of the show’s production company 5&2 Studios in 2019, says the company forced out minority stockholders who had crowdfunded the series through a reverse stock split.
The lawsuit, filed in the Delaware Court of Chancery, states that 5&2 understated future earnings while taking the company private.
It says financial projections during an earlier sale attempt implied a value of about $150 million, while the company was later valued at about $52.9 million when it bought out minority shareholders.
Read more GOP senators seek DOJ fraud data ahead of push to codify enforcement unit
Mr. Garabedian, the show’s largest single crowdfunding investor and a co-executive producer of the series’ first season, said in the complaint that he held 150,000 shares and received about $560,250 after his $300,000 investment.
Dallas Jenkins, executive chairman and co-founder of 5&2, denied the allegations, stating the company has been transparent and accountable.
The complaint also states the vote over the stock split was held during Holy Week, when nearly 80% of minority shareholders did not vote, and that the company borrowed money earmarked for the show’s final season to finance the buyout.
Read more Iran ceasefire ‘over,’ but talks will continue: Trump
About the Author
