Beverly Hills, CA (PRWEB) August 08, 2013
A civil lawsuit was filed on June 10, 2013 in Los Angeles Superior Court against Luken Communications, LLC and Henry Luken, as an individual (CineBx/Allied Artists v. Luken Holdings, Inc., Case Number BC 511739). The suit includes claims for breach of contract, fraud, and conversion in their dealings with CineBx/Allied Artists, and seeks compensatory and punitive damages.
The complaint alleges that Luken Communications breached television program licensing agreements with Cinebx involving 2,500 hours of television programming worth $750,000. The lawsuit alleges that Luken made false statements regarding his company's ability to pay for licensed programs.
The lawsuit also names Luken Holdings, Inc., a company that controls Retro Television Network, the main TV holding of Luken Communications.
On June 23, 2013 Luken Communications filed a Chapter 11 Bankruptcy petition (Case No-13-13069) in the US Bankruptcy Court for the Eastern District of Tennessee, after a Federal jury in Little Rock returned a $47.4 million verdict against the company.
At a July 25, 2013 bankruptcy court creditors’ meeting Matthew Winn, executive vice president, said the provider of TV programming always operated at a loss; while it needed to generate about $700,000 per month to cover expenses, it brought in only about $400,000 a month, thereby supporting the allegations of CineBx that Luken intentionally misrepresented its financial background to gain access to CineBx’s assets, while unable to pay for them or even pay for the return CineBx's assets to California.
The suit alleges that Henry Luken has been personally involved in making the fraudulent and misleading statements by constantly showcasing his wealth as well as the value of his integrity as the guarantee for backing up his agreements and alleges that the defendants have taken Cinebx's assets without paying for them or returning them to CineBx
Luken Communications and its various Henry Luken-controlled subsidiaries and related companies are a television network with broadcast operations around the United States and including stations in California.
CineBx is a joint venture that holds and manages one of the largest private television archives in the United States.
For further information, contact Cinebx’s attorney Joseph F. Hart of Beverly Hills, California, at 310-274-7157, email joe(at)joehartlegal(dot)com.