Johnny Depp Sues Managers for $25M

Alleges firm failed to pay taxes, overspent; managers blame his 'profligate spending'
By Newser Editors and Wire Services
Posted Jan 15, 2017 10:42 AM CST
Johnny Depp Sues Managers for $25M
In this May 23, 2016 file photo, Johnny Depp arrives at the premiere of "Alice Through the Looking Glass" at the El Capitan Theatre, in Los Angeles.   (Richard Shotwell)

Johnny Depp sued his former business managers Friday alleging they mismanaged his earnings throughout a lucrative period of his career, although the company says the actor's spending is to blame. Depp's lawsuit filed against The Management Group seeks more than $25 million, reports the AP, alleging it failed to properly pay his taxes, made unauthorized loans, and overpaid for security. Michael J. Kump, an attorney for The Management Group, calls Depp's lawsuit a "fabrication." The company "did everything possible to protect Depp from his irresponsible and profligate spending," Kump wrote. Depp's suit accuses the company and its owners, attorneys Joel and Robert Mandel, of receiving $28 million in payments for services over 16 years. The company "actively concealed the true state of Mr. Depp's finances while driving him deeper and deeper into financial distress," the suit states.

Depp hired the Mandels in 1999 and they received 5% of his income on hit films such as the Pirates of the Caribbean franchise, Alice in Wonderland, and Charlie and the Chocolate Factory. The lawsuit alleges the company failed to file Depp's tax returns on time, costing him nearly $5.7 million in penalties. The lawsuit also alleges the company overpaid for several services, including forgetting to terminate the lease on a home where Depp's mother lived temporarily, and spending $8 million on security between 2012 and 2015 alone. Depp learned of the problems after hiring new management in March 2016. Kump wrote that Depp owes The Management Group $4.2 million from a $5 million loan. "His tactics and lawsuit will fail, and he will be forced to pay back the loan as promised," Kump wrote. The suit came the same day Depp finalized his divorce from Amber Heard, which calls for Depp to pay $7 million in installments. Heard gets to keep the couple's dogs, notes the BBC, Pistol and Boo. (Read more Johnny Depp stories.)

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