AMC Faces New Profit Lawsuit Over “Fear the Walking Dead” Payouts

AMC Networks is confronting another major profit participation lawsuit. The creator of Fear the Walking Dead, Dave Erickson, has filed a legal complaint. He alleges the network breached its contract and engaged in unfair accounting. The suit was filed this week in a California state court.

Erickson claims he has been systematically shortchanged on his share of the show’s profits. His lawsuit challenges the complex financial structure used to calculate his earnings. This opens a new front in the long-running legal battles surrounding The Walking Dead franchise.

Creator Alleges He Was Locked Out of Profits

Dave Erickson served as the showrunner for the first three seasons of Fear the Walking Dead. His legal filing states he has not received a single dollar in profit participation. This is despite the show’s immense success and clear profitability.

According to the complaint, Erickson’s most recent profit statement shows a staggering $185 million deficit. This massive deficit makes it impossible for him to ever break even. However, the lawsuit points out that at least $49 million has been paid to other, unnamed participants in the show. This information comes from internal accounting documents cited in the filing.

The Core of the Profit Calculation Dispute

The legal fight centers on the definition of “Modified Adjusted Gross Receipts” (MAGR). This is a key metric used to determine backend payouts. Erickson’s legal team argues that AMC promised him the “best possible definition” for his MAGR.

According to Reuters, similar claims have been made in past lawsuits against AMC. The network allegedly waited to see if a show was a hit before finalizing profit terms. This practice, the lawsuit suggests, is designed to lock creators into unfavorable deals after a series becomes successful.

Erickson seeks a court order to modify his payment formula to match better terms given to others. He is also seeking unspecified monetary damages for the alleged breach of contract and bad faith dealings. The outcome could have significant implications for how vertically integrated media companies account for profits.

This new lawsuit underscores the persistent legal challenges major media companies face regarding transparent profit-sharing models with the creative talent behind their biggest hits.

Thought you’d like to know

What is “Fear the Walking Dead”?

It is a spinoff series from the original *The Walking Dead*. The show premiered in 2015 and concluded after eight seasons. Its first season was a major ratings success for AMC.

Who is Dave Erickson?

Dave Erickson was the creator and original showrunner of *Fear the Walking Dead*. He helmed the series for its first three, most-watched seasons. He is also an executive producer on the show.

What does “profit participation” mean?

It is a deal where key creative talent receives a percentage of a show’s net profits. This is often negotiated as backend compensation beyond their initial salary. It is meant to reward them if the show becomes a long-term financial success.

Has AMC faced similar lawsuits before?

Yes. Most notably, AMC settled a $200 million lawsuit with Frank Darabont over *The Walking Dead*. Other producers, including Robert Kirkman, have also been involved in profit disputes with the network.

What is “self-dealing” in this context?

It refers to a conflict of interest when a parent company sells a show to its own distribution arm. The lawsuit alleges AMC used an artificially low “imputed license fee” between its own divisions. This practice can reduce the reported revenue from which profits are calculated.