Johnny Depp Seeking $25M From Former Business Managers for Mismanagement
A recent lawsuit filed by Johnny Depp against his former business managers and attorneys is seeking over $25 million. The company asserts that the actor's spending is to blame, while Mr. Depp asserts the real problem was gross mismanagement of his business, finances, and personal assets by his managers.
The lawsuit is the result of Depp hiring a new business manager, who after conducting an audit of his finances and business, discovered the gross mismanagement. Depp fired his former managers after they advised him to sell his home in France in order to payoff a rather large debt.
Celebrity Business Managers
When actors, entertainers, and athletes become famous stars, or even when they are just getting their start, they generally turn to professionals to help them navigate the business end of the entertainment industry.
Business managers can range in talent and services. Some only focus on accounting and financing, while others focus on booking performances, or generating income. Additionally, some business management groups, like Depp's former managers, have entertainment lawyers running the operation, which is helpful when it comes to contract negotiation and potential litigation.
In the lawsuit against his managers of 16 years, Depp asserts that not only was there gross financial mismanagement, but there was also fraud, and general incompetence. As for this last allegation, Depp's complaint explains that his taxes were routinely filed late, and as a result, he racked up $5.7 million in tax penalties and interest. Additionally, Depp alleges that his former managers took out over $40 million dollars in loans on his behalf, but without his knowledge.
While Depp's allegations appear to be based in fact, his former management group claims the allegations are fabrications. They claim that Depp was facing the judicial foreclosure of his home as a result of his own financial irresponsibility, and that the instant lawsuit against them is an attempt to forestall those proceedings.
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