Fox units file US$46.4m counterclaim against Genting Malaysia

KUALA LUMPUR (Jan 24): Fox Entertainment Group LLC, Twentieth Century Fox Film Corp and FoxNext LLC (Fox) have filed a US$46.4 million (RM192.1 million) counterclaim against Genting Malaysia Bhd’s suit against them for breach of contract at the US District Court, Central District of California.

In a bourse filing yesterday, Genting Malaysia said Fox, together with Twenty First Century Fox Inc (21CF) and The Walt Disney Company also filed a reply to the lawsuit initiated by the casino and resort operator in November last year.

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In its counterclaim, Fox is asking for US$46.4 million in respect of annual licence fees, guarantee amounts or royalties and travel reimbursements pursuant to a Memorandum of Agreement (MoA) dated June 1, 2013, as well as consequential damages, reasonable costs and other relief under applicable law.

The MoA was entered between Genting Malaysia and Twentieth Century Fox Licensing & Merchandising, a division of Fox Entertainment Group Inc, whereby the group was granted a licence to utilise certain intellectual property rights associated with Fox theatrical motion pictures in connection with the design, development, construction and operation of what was to be called the Twentieth Century Fox World theme park under the Genting Integrated Tourism Plan.

Genting Malaysia said it is in the process of reviewing the counter claim with its legal counsels and intends to file a timely response.

Its legal proceedings in the same US district Court against Fox, 21CF and Disney is for breach of contract, and breach of the implied covenant of good faith and fair dealing. The group is claiming damages of over US$1 billion following the termination of the MoA by Fox.

Genting Malaysia slipped two sen or 0.61% to close at RM3.26 yesterday, for a market capitalisation of RM18.37 billion.

This article first appeared in The Edge Financial Daily, on Jan 24, 2019.

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