Bonita Beach Springs company's investment in film production wins partial victory

By Marian Johns | May 8, 2019

FORT MYERS —  A Nevada production company was granted in part and denied in part its motion to dismiss a case involving a dispute with a Bonita Beach Springs business over a film financing agreement. 

According to the April 9 U.S. District Court for the Middle District of Florida Fort Myers Division filing, defendants 3 Amigos Productions LLC, Blackburnsteele LLC, Issa Zaroui and Mark Crawford asked the court for a motion to dismiss plaintiff SkyPoint Advisors' six claims that include violation of the Securities Exchange Act of 1934 and Florida's Securities Investor Protection Act and Deceptive and Unfair Trade Practices Act, common law fraud, violation of, breach of contract and breach of fiduciary duty. 

The case stems from a 2017 business deal that involved the defendants and plaintiff entering into a "film financing agreement" with SkyPoint investing $50,000 for the making of the film "Lazarat Burning."  After signing the agreement, SkyPoint asked for a refund of its investment due to "significant concerns" about the film project but the defendants refused, causing SkyPoint to file suit, alleging the six claims and asking for $90,000 in damages. 

The defendants say SkyPoint failed to "satisfy pleading requirements" on one of its claims, lacked subject matter jurisdiction on five claims and also asked the court for sanctions to keep SkyPoint over what they argue is a "frivolous claim."

U.S. District Judge John Steele stated that the court found the plaintiff's claims failed to meet the requirements according to parts of  the Federal Rule of Civil Procedure and the Private Securities Litigation Reform Act of 1995 (PSLRA), but the court allowed SkyPoint another chance to amend. The court dismissed five of the counts in SkyPoint's complaint for "lack of subject matter jurisdiction" and denied the defendant's request for sanctions. 

Steele concluded that the plaintiff "is granted leave to file a third and final amended compliant" within 21 days.

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