An investor’s lawsuit against the producers of Broadway’s ‘Cabaret’ raises serious allegations about financial transparency and accountability in theatrical financing.
Investor Sues Broadway’s ‘Cabaret’ Producers Over Financial Disputes
An investor in the Broadway production of Cabaret At The Kit Kat Club is suing the show’s producers, claiming that despite the revival grossing more than $90 million, he has seen no return on his $50,000 investment and has been “denied any meaningful review of partnership records or finances.”
Details of the Lawsuit
James Lorenzo Walker, Jr., an Atlanta-based entertainment lawyer, filed the complaint on September 4 in New York Supreme Court. He alleges that the Cabaret producers have engaged in “a deliberate scheme intended to strip him and other investors of their investments in, and partnership profits from, the Broadway production.”
The suit states, “Despite Cabaret grossing more than $90 million since opening on April 21, 2024, the Plaintiff has not received a return of his investment or a share of profits from the Production. He has requested and been denied access to records or an accounting and has been denied any meaningful review of partnership records or finances.”
Allegations Against the Producers
“Defendants’ conduct,” it continues, “exemplifies an emerging scheme in theatrical financing whereby outside investors are induced to invest cash into multi-layered structures designed to conceal revenues, divert payments, and facilitate self-dealing among insiders and their affiliate entities, while depriving the outside investors of transparency, accountability, and the financial benefits to which they are legally entitled.”
The lawsuit seeks compensatory damages, punitive damages, attorneys’ fees, and an “accounting of all Partnership revenues, expenses, and disbursements.” The financial amounts would be determined at trial.
Producers Respond to Claims
The producers, led by ATG Entertainment, strongly deny Walker’s claims, stating they have no merit. In a statement obtained by Deadline, they said, “While we are incredibly proud of the artistic success of Cabaret At The Kit Kat Club on Broadway and deeply saddened by the fact it has had to close early, the production has not been in a position fiscally to make any distribution to investors.”
They added, “We’ve offered to engage in a constructive dialogue with Mr. Walker regarding his financial expectations and to give him access to our accounts, but unfortunately, he has instead decided to file a lawsuit that lacks any merit.”
Challenges Faced by the Production
The revival is produced by Adam Speers for ATG Productions, Underbelly, Gavin Kalin Productions, Hunter Arnold, Smith & Brant Theatricals, and Wessex Grove. The lawsuit comes at a gloomy time for Cabaret. Earlier this week, producer Speers announced that the show will close a month early on Sunday, September 21, partly due to star Billy Porter withdrawing from the show while recovering from “a serious case of sepsis.”
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While Cabaret opened last year to strong numbers, the weekly grosses have plummeted in recent weeks. Since July 20, when the gross for the week was $1.2 million, the figures have steadily declined. In recent weeks, the weekly take dropped to the $500,000 range, then $400,000, with last week’s gross at a mere $380,052. About 32% of the Wilson’s seats went unoccupied, with estimated weekly running expenses exceeding $1 million.
Future of ‘Cabaret’
Directed by Rebecca Frecknall, Cabaret was and is an Olivier-winning hit at London’s West End, now in its fourth year. Grammy Award winner Reeve Carney and two-time Tony Award nominee Eva Noblezada will take over the roles of the Emcee and Sally Bowles in London on September 22.
The Broadway production did not receive the glowing reviews of London critics nor the kind of long-term interest among audiences that keep expensive shows operating. Tony voters handed the show only one award, for Tom Scutt’s scenic design.
Walker invested the $50,000 into the show through KKC Productions NY Limited Partnership just a few days before Cabaret opened in April 2024. He was a co-producer on last season’s acclaimed, early-closing Dead Outlaw and an investor in the hit August Wilson’s The Piano Lesson and the popular Michael Jackson musical MJ.
News of the lawsuit was first reported by Philip Boroff’s Broadway Journal business subscription newsletter.
