Sylvester Stallone sues Warner Bros. alleging fraud

BURBANK, Calif. (KABC) -- Sylvester Stallone has sued Warner Bros., one of Hollywood's biggest studios, for bad accounting practices and fraud.

Stallone claimed the studio owes him millions for allegedly covering up profits from his films.

The lawsuit centers around the 1993 movie "Demolition Man," which starred Stallone and actress Sandra Bullock.

The lawsuit, which alleges bad accounting practices and fraud, said Warner Bros. built the Rogue Marble production company out of the thousands of dollars owed to Stallone from "Demolition Man."

Stallone claims the studio sat on the money for years, initially saying the movie was more than $66 million in debt, but when challenged, the lawsuit said the studio sent Stallone a check for more than $2 million several years later.

According to the lawsuit, Stallone was entitled to 15 percent of the movie's grosses, which he claimed was at least $125 million.

"The motion picture studios are notoriously greedy. This one involves outright and obviously intentional dishonesty perpetuated against an international iconic talent," the lawsuit states.

Attorney Dana Cole said the case would likely be settled.

"Typically, any lawsuit involving what they call this creative accounting ends up in an arbitration and usually settles prior to the arbitration or during the arbitration," he explained. "Both the studio and the celebrity don't like the press associated with wars over profit participation and so these things routinely settle."

In addition to restitution, Stallone said he wants to help all actors by calling for an end to the accounting practice.

Warner Bros. declined to comment about the lawsuit when ABC7 reached out.