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Funimation Sues A.D. Vision, Sentai, Others for US$8 Million
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TOPIC: Funimation Sues A.D. Vision, Sentai, Others for US$8 Million

Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104119

  • The Coffee God
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For those that want to look at the documents.

www.hcdistrictclerk.com/eDocs/Public/Search.aspx


A D VISION INC vs. ARM CORPORATION
Case # 200823026

FUNIMATION ENTERTAINMENT vs. A D VISION INC
Case # 201167220




www.animenewsnetwork.com/news/2012-01-13...ers-for-us$8-million


Funimation Sues A.D. Vision, Sentai, Others for US$8 Million

posted on 2012-01-13 16:00 EST

Seeks to have ADV's 2009 sale of assets declared void

--------------------------------------------------------------------------------


On November 4, 2011, FUNimation Entertainment filed a lawsuit in the district court of Harris County, Texas against John Ledford, as well as companies A.D. Vision, AEsir Holdings, Sxion 23 (A.K.A. Section23 Films), Valkyrie Media Partners, Seraphim Studios, Sentai Filmworks, Sentai Holdings, and Unio Mystica Holdings (A.K.A. Switchblade Pictures) for breach of contract and other claims. Ledford is the CEO and co-founder of A.D. Vision. In the lawsuit, Funimation claims that the defendants owe Funimation "an amount to be proven at trial but currently estimated" to be approximately US$8 million plus interest, costs, and attorneys' fees.

Funimation's lawsuit alleges that it became a creditor of A.D. Vision (ADV) in regard to a debt ADV owed ARM Corporation, which was a third party licensing entity jointly owned by Sojitz Corporation and several other companies. The lawsuit notes that ADV had purchased anime licenses from ARM after May 2006, and in January 2008 ARM "declared ADV to be in default of the parties' agreements." ADV lost the rights to more than 30 anime properties, and in July 2008, Funimation and ARM announced that they had reached a distribution agreement for those properties.

In the lawsuit, Funimation claims that ARM also gave Funimation the right to enforce ARM's agreement with ADV, specifically in regard to the debt that ADV owed ARM — making Funimation a creditor. The suit alleges that ADV never paid this debt, and instead sold its assets for below market price to several companies owned by former ADV executives and shut down.

The suit goes on to claim that ADV's transfer of assets "was made with the intent to defer, hinder or defraud the creditors of ADV," including Funimation, and that the new companies "succeeded ADV's contractual liability" in regard to the outstanding debt.

Funimation is also requesting that the court declare ADV's transfer of assets "as null, voided and without effect," restoring those assets to the parent company. Funimation is also requesting a jury trial.

On December 23, Sentai Filmworks, Seraphim Studios, Sentai Holdings, Valkyrie Media Partners, Unio Mysteica Holdings, AEsir Holdings, and Section23 Films filed a counterclaim disputing these charges. The companies claim, among other things, that they do not have a contract with Funimation and are not liable to the company. They claim that the companies did not exist when Funimation acquired the rights from ARM to enforce ADV's contract with ARM. In addition, the companies claim that Funimation's lawsuit was filed after the two-year statute of limitations, and that Funimation was not involved with the original contract and cannot claim any direct damages.

The companies are asking that the court declare that Funimation's contract "is not a valid agreement binding on the Defendants," that the companies owe "no duties or performance of any obligations" to Funimation, and that Funimation pay for the companies' attorney's fees, costs, and expenses.

The first pre-trial meeting is currently scheduled for October 5, 2012.

Section23 Films provided ANN with the following statement:

Funimation's lawsuit is completely without merit or basis and we look forward to proving it when we have our day in court.

When asked to comment, Funimation told ANN that its official statement is addressed in the lawsuit.
Last Edit: 1 year, 10 months ago by The Coffee God.
The following user(s) said Thank You: WhiteTigerForever

Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104120

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I wasn't sure which section to put it in, since it applies to both.

-now goes off to actually read it-

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104123

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The only winners in this will be the bloody lawyers land sharks.

Sigh.

Mark Gosdin

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104124

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What a dick move. First they go behind backs , take titles , and now they sue because they are having cash problems and Sentai is doing better then them. I repeat DICK MOVE!

Everyone to twitter and facebook!

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104126

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So now that Funi's having problems with their releases coming out on time, releasing them on BD as they originaly promised, getting simulcasts, etc. they're going the lawsuit route.

Wow, they must be really hurting for cash after the whole Navarre sale.

tsk, tsk....
Last Edit: 2 years, 3 months ago by tonka.

Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104127

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psychopuppet wrote:
What a dick move. First they go behind backs , take titles , and now they sue because they are having cash problems and Sentai is doing better then them. I repeat DICK MOVE!


I haven't seen the contracts myself, so I'm not going to go too deeply into this, but really, that was my reaction as well.

No matter who is right in this, it'll seriously fuck with an already fragile industry.

Re: Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104129

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Really thinking about canceling whatever open Funimation orders I have at Rightstuf. I don't have many and what I do I don't really think I care about.

Re: Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104131

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www.animenewsnetwork.com/news/2008-10-22...ot-affect-funimation

I found this and I was thinking, if ARMS was dissolved and Funi was dealing directly with the licensors for those series and this happened in 10-22-2008, at least, and they filed the lawsuit in 11-4-11. then the 2 year statue of limitations is correct.
Last Edit: 2 years, 3 months ago by tonka.

Re: Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104133

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My orders are canceled except one that another item in the order from another company would be delayed I can't risk. I'll use the money to get those last few Bandai titles I want.

Dragoon I believe knew a lot more about the whole ARMS thing then I did. I do remember the public stuff really made it look like what was going on between Funimation and ARMS was underhanded. My initial reaction is still my reaction to all of this. Doing this sort of crap not long after the news about Bandai and Media Blasters really does seem like a dick move. Right or wrong it's just bad form and a dick move. I guess Dragon Ball Z must not be selling well anymore.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104134

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I am sure it was part of the agreement funi had to make to get the licenses to the 30 animes in 2008. I am not to happy with the situation but for me being mad a Funimation would't help. I will just wait untill this is all over and see who is wrong.

The biggest losers will be the fans.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104135

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Timing wise, this all started in Nov of last year, it was well before we had any inkling of the Bandai & Media Blasters downsizings.

Sort of like these all happen in various offices while the rest of us are thinking Turkey:

Funimation - OK, Tell the attorneys to file the suit.

Bandai - Sempai, There's no money to be made in North America anymore, let's wind it down.

Media Blasters - Boss, We've got a problem with payroll.

It's a downer, for sure.

Mark Gosdin

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104136

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I wonder fow many people would cancel funi orders over this or Elite subscriptions? I have nothing to cancel even if I wanted to.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104137

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Can anyone say Douche bags? I actually watched a couple series from Funimation since the whole underhanded, shady, crooked ARM transaction took place. I really didn't want to, but they were series I was seriously interested in. That will never happen again. I really can't stand that company. They are undoubtedly the epitome of the greedy corporation.
Slick

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104148

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I don't know what to think but I like the titles funi release to just stop buying from them. If I did they wouldn't be much anime buy. Not sure what to do but will wait and see what happens.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104152

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1.The contract said Funi should get payed they should get payed, that is not debatable.

2.Section 23 has bragged about forming the new company so they could get away from their previous debts.

3.Funimation is a bunch of jerks for doing this.

Funimation is in the right it seems, but sometimes you have to let this stuff go like what the companies do about suing pirates, however 8 million is a lot of money, and Funimation seems to be hurting, I mean look at the Heaven's Lost Property situation.

Funimation will not win the case by my understanding, but Section 23 still exploited a loophole and I am not exactly ready to root on them because of that.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104160

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mitamaking wrote:
1.The contract said Funi should get payed they should get payed, that is not debatable.

2.Section 23 has bragged about forming the new company so they could get away from their previous debts.

3.Funimation is a bunch of jerks for doing this.

Funimation is in the right it seems, but sometimes you have to let this stuff go like what the companies do about suing pirates, however 8 million is a lot of money, and Funimation seems to be hurting, I mean look at the Heaven's Lost Property situation.

Funimation will not win the case by my understanding, but Section 23 still exploited a loophole and I am not exactly ready to root on them because of that.

Do you think Funimation exploited a loophole when they grabbed those 30 titles from underneath ADV's noses? I haven't read any of the contracts, but I wish I had a better understanding of this whole situation.
Slick

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104161

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oh Funi, if you're really that hard up for cash you can always sell some of your furniture/office supplies.

or hand made bento boxes.

that'd be nice...

now i'm hungry...
Last Edit: 2 years, 3 months ago by tonka.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104167

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ADV signed a horrible deal with Sojitz, Funimation bought the titles from Sojitz, likely under the table, but that does not change the fact that ADV due to that horrible contract owes Funimation 8 million dollars, put yourself in the shoes of Funimation, that is 8 million dollars, that is a lot.

I'm sick of having to be the devil's advocate here.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104169

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Though likely we are talking about the same lawyer that tried to sue 1337 people. So who knows if they have a leg to even stand on in this. We know the lawyers over at Sentai and such are quite good and knowledgeable at what they do.


So far I think the one thing almost everyone seems to agree on when it comes to the state of the industry over the last few years this comes out as a "DICK MOVE!". I say almost everyone because their are those people that hate any company that does not dub everything.


Remember after the Sojitz/ARMS deal happen there was also ADV did not get the Geneon deal Funimation did. Did it happen because that? Who knows but it could very well have been though.

Course almost all of those titles and Sojitz stuff sold rather badly for Funimation or rather at the time Navarre. So hey I always took it as karma is a bitch. Karma will come back and bite whoever is in the wrong here in the butt. The problem now is however that this messes with the industry as a whole. So doing it as I said when all is said and done right or wrong as a big "DICK MOVE!". Also it just still strikes me as odd they do it now when Sentai and the others are appearing to be doing well. It just makes me wonder are Funimation in trouble money wise or are they trying to down a competitor to get the largest market share.

Funimation has another one of their live blogs coming up but I doubt we will see anything other then skating around the subject if it's even addressed.


This has done something good for me. Made me cancel stuff I did not really need in the first place.

Re:Funimation Sues A.D. Vision, Sentai, Others for US$8 Million 2 years, 3 months ago #104171

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So...Funi's now a creditor for another company - ARMS - that doesn't exist, and hasn't existed for almost 3 years, it was dissolved right after the license transfer.

Who would this money go to? What, will in stay in Funi's coffers?

According to the article, even Funi never really had the licenses as it says they were in a "distrubution agreement" for those properties, like what they're were doing with Geneon.

So what is the truth?
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