Stan Lee/Marvel lawsuit dismissed!

By StuartGreen01 - Apr 01, 2010 06:04 PM EST
Filed Under: Marvel Comics
Source: The Hollywood Reporter

I don't know if this was put up yet, and if it has, then sorry. But here's the latest on Stan Lee's lawsuit, according to The Hollywood Reporter:

"After a decade of squabbling in a very convoluted legal battle, a federal judge in New York declared a "halt" to litigation involving the breakup of Stan Lee Media, Inc.

In the case, shareholders of SLMI alleged they missed out on profits when SLMI dissolved in bankruptcy and Stan Lee, the genius behind Spider-Man, Iron Man, and other characters, improperly transferred intellectual property to Marvel. Yesterday, U.S. District Court Judge Paul A. Crotty dismissed the lawsuit, citing lack of standing, expiration of statute of limitations, and other causes.

The decision puts a knot on a tangled web worthy of a Spider-Man comic.

In 1998, after Marvel Entertainment used bankruptcy proceedings to void its $1 million-per-year lifetime contract with Stan Lee, the legendary comic book creator formed SLMI as a Web-based production and marketing company to control his intellectual property.

Three years later, SLMI's own bankruptcy triggered cascading litigation.

First came Lee's suit against Marvel for reneging on his employment contract. When a settlement was reached and the parties kissed and made up, Marvel regained control over Lee's properties. The executives and shareholders of SLMI weren't happy and threatened litigation.

Lee beat them to the punch by suing for $50 million for trademark infringement, alleging that SLMI and its leaders had hijacked his name and image and were trying to prevent him from creating new characters.

SLMI, its leaders and/or shareholders responded with their own lawsuits. In March 2007, a lawsuit against Lee and Marvel was filed in New York. It was dismissed. In July 2007, a lawsuit against Lee was filed in California. In January 2009, another lawsuit in New York was filed, alleging $750 million in damages. Things were getting complicated, and Stan Lee was doubting the legitimacy of the NY class of plaintiffs.

In his decision yesterday, Judge Crotty didn't hide his frustration:

"The transaction at issue is now more than a decade old. Plaintiffs have been attempting to initiate the proceeding in this Court now for more than three years; in Colorado Supreme Court for more than half a decade; for three years in U.S. District Court for the Central District of California, and in a bankruptcy proceeding involving SLMI, which began in February, 2001 and continued to December, 2006. There has also been class action litigation in the Central District of California involving these same parties, as well as a settlement thereof..."

As we wrote previously, the real action of the case centered in California, and now that the New York case has been dismissed too, our sources tell us that this case can effectively be declared over, notwithstanding appeals and shareholder gripes. SLMI's shareholders won't make Disney's $400 billion bet on Marvel look silly. Now, Disney and Marvel just have to deal with the estate of Jack Kirby, suing to gain control over some of the same characters in dispute in the SLMI case."

This was done yesterday, so I doubt this is an April Fools joke. If so, then good for Stan the Man. I mean, come on, it's Stan Lee! Stan Lee rules!

What do you guys have to say about this news?

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CorndogBurglar
CorndogBurglar - 4/1/2010, 10:00 PM
wow, i never even heard of this. interesting...
loganoneil
loganoneil - 4/2/2010, 8:56 AM
I've been watching this for some time now (being the Stan fan I am - please note the SACRASM, it doesn't translate well over the internet). I think there's something rotten in Denmark. Lee is a consumate legal worm and shameless self-promoter. The people involved in the lawsuit against Lee (hmmm... Stan Lee Media, Inc. - "SLime-MI") have a LEGITIMATE beef with Stan 'The Flam-Flam Man'. They were under the (false and misleading) impression that SLMI had exclusive rights to Lee's intellctual property ("...a Web-based production and marketing company TO CONTROL HIS INTELLECTUAL PROPERTY...). So when Flim-Flam and Marvel make up, what does Stan do? He transfers said intellectual property back to Marvel's control for a better deal. Do the shareholders - the people who believed in Stan Lee and SLMI and invested their hard-earned cash get a say in this? HELL NO! THEY are the ones left holding the bag while 'The Man' skates under the radar with the goods and back into Marvel's good graces! Stan is nothing more than a scam artist... a shameless self-absorbed snake-oil salesman who's schtick is getting old (even for him)! I hope the Kiby lawsuit kicks his sorry ass to the curb, once and for all!
CorndogBurglar
CorndogBurglar - 4/2/2010, 9:24 AM
@ logan

"I hope the Kiby lawsuit kicks his sorry ass to the curb, once and for all!"

um...the kirby's aren't filing a lawsuit against Stan...lol

they're suing Marvel.
loganoneil
loganoneil - 4/2/2010, 11:07 AM
Corndog - I realize the Kirbys aren't DIRECTLY suing Lee, but by instigating the lawsuit against Marvel, they're taking a stance AGAINST him for the intellectual property rights!
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