As Distribber Liquidates, Alleged Failure to Pay Filmmakers ‘Amounts to Theft,’ Lawyer Says

October 25, 2019Media Mention

Independent filmmakers who used the aggregator Distribber to get their movies on iTunes and Amazon say they’re owed thousands in royalties as the service faces financial collapse. This week, Distribber’s parent company, GoDigital Inc., sent letters informing clients that the company has opted to liquidate as an alternative to bankruptcy — a process that’s supposed to divvy up the firm’s assets to pay royalty and other debts. Now, an attorney representing one of these filmmakers is calling for a criminal investigation.

Corporate entertainment lawyer Schuyler M. Moore, a partner at Greenberg Glusker, said companies often opt for ABC versus bankruptcy when there are little to no assets to divide. Unlike a judge-supervised bankruptcy, the ABC process is done largely behind closed doors.