Key facts
- Netflix is being sued for $105 million over a stolen hard drive containing the unreleased Nicolas Cage film 'Fortitude'.
- The lawsuit was filed by producer Simon Afram and the production company Op-Fortitude.
- Plaintiffs allege Netflix failed to implement adequate security measures for the unencrypted drive.
- Netflix claims the production company's failure to encrypt the drive makes it not liable.
- The film 'Fortitude' reportedly had a production budget of $45 million.
Netflix is facing a $105 million lawsuit after a hard drive containing an unreleased Nicolas Cage film, titled 'Fortitude,' was stolen from its Los Angeles offices.
Filmmaker Simon Afram and the production company Op-Fortitude filed the suit, alleging that Netflix failed to implement basic security measures for the unencrypted drive and delayed notifying them of the theft for about a week. The plaintiffs are seeking damages equivalent to at least 2.5 times the film's $45 million production budget, totaling $112.5 million, plus punitive damages.
According to the complaint, Netflix requested the screener be delivered unlocked and subsequently failed to arrange for its prompt return. After more than a week of silence, Netflix's Director of Original Film, Sean Berney, admitted that several drives had been stolen, including the one containing 'Fortitude.' Berney reportedly claimed thieves would need a key to unlock the drive, despite Netflix allegedly asking the production company to unlock it prior to delivery.
Netflix disputes liability, asserting that the production company's failure to encrypt the drive means Netflix does not bear the risk of loss. A Netflix spokesperson stated that only the 'Fortitude' drive was accessible and that the company has taken extra measures to support the filmmaker, including offering to monitor piracy sites. Netflix also claims Afram and his team attempted to extort money, issuing an initial demand letter for $165 million.
Afram, who personally invested $45 million to make the film, described 'Fortitude' as a thriller about a real-life World War II spy who inspired James Bond, with a tone similar to 'Ocean's Eleven' and 'Inglourious Basterds.' The film, directed by Simon West, stars Nicolas Cage and Sir Ben Kingsley and was shot on 35-millimeter celluloid. Afram planned to sell exclusive rights to the highest bidder after previewing it for Netflix.