Legal Battle Erupts as 'Obsession' Movie Producers Face Lawsuit Over Alleged Withheld $500M Profits

Film producer Leonora Ann Darby has initiated a comprehensive lawsuit against Tea Shop Productions and its executives, James Harris and Mark Lane, alleging a systematic denial of promised compensation and profit participation. The complaint, filed on August 28 at the Los Angeles Superior Court, centers around Darby's crucial role in rescuing the horror film "Obsession," which subsequently achieved nearly $510 million in worldwide gross. Darby’s 10-count breach of contract complaint accuses Harris and Lane of years of unequal treatment, broken promises regarding compensation, and demeaning, gendered behavior.

According to the 135-page complaint, Darby joined Tea Shop Productions in 2019 during a period when the company was reportedly struggling. She alleges that Harris and Lane initially offered her a role as an equal producer, with a promised stake in compensation, company direction, project decisions, financial transparency, and business opportunities. However, despite her increasing responsibilities within the company, this arrangement allegedly underwent significant changes over time.

By 2024, Darby claims the producers had explicitly promised her one-third, or 33.33 percent, of Tea Shop’s net profits from films she lead-produced, alongside direct participation in applicable collection account management agreements. The complaint asserts that Darby meticulously fulfilled her end of this agreement, progressively moving from a development and production executive to one of the company’s three core producers. Between 2019 and 2026, she was actively involved in originating and developing projects, attaching filmmakers, assembling financing, producing films through delivery, supervising post-production, and managing crucial legal, quality-control, and operational issues.

The core of Darby’s dispute with the production company specifically revolves around the film "Obsession," written and directed by Curry Barker and starring Inde Navarrette and Michael Johnston. Darby alleges that she intervened decisively when the production faced severe creative and post-production challenges. Her efforts included helping to reinstate Barker to the project after his removal, guiding the film back on track, preventing a disastrous final cut, and securing approval for crucial reshoots that addressed production problems. These interventions were instrumental in ensuring the film's completion in time for the Toronto International Film Festival.

Produced on a modest budget of less than $800,000 (reportedly as low as $750,000), "Obsession" later achieved remarkable commercial success. Following its premiere and a reported $16.2 million sale to Focus Features at the Toronto International Film Festival, the film was widely released on May 15 and went on to generate nearly $510 million worldwide.

Despite her pivotal role in salvaging the project and its subsequent massive success, Darby alleges she was ultimately excluded from the overall net profits she believed she had been promised. The complaint states, “These Defendants failed to honor their promises and instead treated Darby as their subordinate, including in a highly demeaning and gendered manner, and continually refused to properly compensate her.” Harris and Lane are further accused of “ruthlessly cutting Darby out” of the net profits from "Obsession," which is highlighted as Tea Shop’s biggest hit and one of the most successful independent films of all time. While Darby acknowledges receiving an additional $300,000 payment in connection with "Obsession," she maintains that this amount does not adequately reflect the compensation and profit participation to which she was entitled. The complaint also cites supporting evidence such as emails and other correspondence detailing the alleged compensation agreements and the treatment she received.

Beyond "Obsession," Darby is seeking a comprehensive accounting of profits and compensation related to several other projects, including "A Banquet," "Bull," "The Wasp," "The Cut," "Into the Deep," "Tornado," and "The Surfer." She is asking the court for unspecified damages and wages, an equitable accounting of the films and other projects covered by the alleged agreements, compensatory damages, and unpaid project bonuses, specifically seeking one-third of "Obsession's" net profits. The lawsuit names Tea Shop Productions and related business entities, along with James Harris and Mark Lane individually. Notably, Focus Features, which distributed "Obsession," and executive producer Jason Blum are not named as defendants in the case. Darby has formally requested a jury trial. It is important to note that the allegations contained within the complaint have not yet been proven in court, and the defendants have not been found liable.