Producer Darby Sues Tea Shop for Withholding Share of $510M 'Obsession' Profits
Leonora Ann Darby has filed a breach of contract lawsuit against Tea Shop Productions and its co-founders, James Harris and Mark Lane, alleging they denied her a promised one-third share of the net profits from the horror hit 'Obsession.' The film, which grossed over $510 million worldwide on a budget under $800,000, was a major success for Focus Features. Darby claims she was treated as a subordinate despite an agreement for equal producer status and compensation. The lawsuit seeks an accounting of profits and unpaid wages, noting that Darby received only a single $300,000 payment. The complaint highlights her role in rescuing the film's production and distribution, including its sale to Focus Features at the Toronto Film Festival.
Key points
- Leonora Ann Darby filed a 135-page breach of contract complaint in Los Angeles Superior Court on August 28, 2026, against Tea Shop Productions, James Harris, and Mark Lane.
- The lawsuit alleges that Darby was promised equal producer status and a 33.33% share of net profits for films she lead-produced, a deal allegedly reneged upon in 2024.
- 'Obsession,' written and directed by Curry Barker, grossed over $510 million worldwide on a budget of less than $800,000, making it one of the highest-grossing independent films of all time.
- Darby claims she was essential to the film's success, stepping in to manage post-production and creative issues, and securing a $16.2 million sale to Focus Features at the Toronto Film Festival.
- The complaint asserts that Harris and Lane treated Darby as a subordinate in a 'demeaning and gendered manner' and cut her out of the overall net profits, providing only a single $300,000 payment.
- The lawsuit seeks unspecified damages, wages, and an equitable accounting of profits for 'Obsession' and other projects, including 'A Banquet' and 'The Wasp.'
Background
The film 'Obsession' has been a significant commercial success, surpassing $500 million in worldwide box office revenue by August 2026, becoming the first original 2020s release to reach that milestone. It is also the highest-grossing film with a budget under $1 million. The film's success led to tie-ins with Universal's Halloween Horror Nights, including interactive experiences featuring the character Nikki Freeman. The current lawsuit arises from disputes over profit participation and producer status following this commercial success.
Why it matters
This lawsuit highlights potential issues with profit participation agreements and producer status in the independent film industry, particularly when a low-budget film becomes a major commercial hit. It may set a precedent for how compensation and credit are handled in high-grossing independent productions.
What to watch
The case will proceed through the legal system, with Darby seeking a jury trial and an accounting of profits. The outcome could impact how profit participation and producer status are negotiated and enforced in the film industry.
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