Warner Bros. Could Face Lawsuit Over HBO Max Deal; Legendary Entertainment Considering Legal Action

Warner Bros. might face legal charges from Legendary Entertainment over its deal with HBO Max.

Warner Bros. has decided to release its entire 2021 film both on HBO Max and in theaters. However, Legendary Entertainment, the production company that co-financed "Dune" and "Godzilla vs. Kong," is allegedly not happy with it. In fact, it might take legal action against the studio for its decision, Variety reported.

Legendary spent a significant portion for "Dune," which is worth $175 million, and "Godzilla vs. Kong," which is priced at $160 million. However, they were allegedly kept out of the loop that their films would be among the 17 films that Warner Bros. offered to the subscription streaming service.

Sources said the top brass at Legendary are trying to discuss the issue with Warner Bros. They have frequently collaborated in the past, such as in Christopher Nolan's "Dark Knight" trilogy, "The Hangover" movies and the "Godzilla" franchise.

Legendary is trying to negotiate a more generous deal, but it is allegedly ready to take legal action off the table should they fail to compromise. One option is for Warner Bros. to buy the films outright from Legendary.

At present, no legal charges have been filed but a suit could materialize early this week, the report noted. Also, it remains unclear what legal grounds Legendary would use to sue the studio, but it would likely involve a breach of contract.

Both Legendary and Warner Bros. declined to comment when Variety reached out to them.

Meanwhile, "Dune" director Denis Villenueve was also allegedly disappointed with the HBOX Max plan. He preferred to have his movie released in theaters because it was intended for the big screen.

"Dune" stars Timothee Chalamet, Oscar Isaac and Zendaya. It was designed to be a two-part retelling of Frank Herbert's seminal 1965 novel. However, the sequel remains unclear because the other filmmakers involved were also unhappy with the move.

As for Warner Bros. decision to release movies on HBO Max, the studio said it would be a "temporary solution" and a "one-year plan." Ann Sarnoff, CEO of WarnerMedia Studios, said that doing so would be a "win-win" situation for everyone.

"No one wants films back on the big screen more than we do. We know new content is the lifeblood of theatrical exhibition, but we have to balance this with the reality that most theaters in the U.S. will likely operate at reduced capacity throughout 2021," she explained.

"We see it as a win-win for film lovers and exhibitors, and we’re extremely grateful to our filmmaking partners for working with us on this innovative response to these circumstances."