Producer claims Netflix security failure cost Him $105 million
A film producer has filed a lawsuit against Netflix, seeking $105 million in damages after claiming that a copy of his unreleased Nicolas Cage movie was stolen from the company’s Hollywood studios.
According to the lawsuit, producer Simon Afram alleges that Netflix failed to properly protect a master copy of his World War II drama, Fortitude, resulting in the loss of the film and causing significant financial harm. The legal complaint was filed in a California court on Wednesday.
The lawsuit states that Afram and his production team delivered an unencrypted master copy of Fortitude to Netflix in June after the streaming giant requested the film as part of discussions over a possible distribution deal. Afram reportedly invested more than $45 million in the project, which took around seven years to complete. At the time, the filmmakers were hoping to secure a distribution agreement with either Netflix or another major entertainment company.
However, only nine days after the film was delivered, the producers received an email from Netflix informing them that several hard drives had been stolen from the company’s offices. According to the lawsuit, the stolen items included the drive containing the only master copy of Fortitude.
The producers argue that the theft has severely damaged the commercial value of the movie. They claim that distributors are unlikely to purchase a film that could potentially be leaked online through piracy, making it a far riskier investment. They also contend that Netflix should have implemented stronger security measures to protect valuable and confidential film materials stored at its facilities.
According to the complaint, no major distributor would be willing to spend tens of millions of dollars acquiring and promoting a film while facing the possibility that an unauthorized copy could surface online at any moment. The producers believe this ongoing risk has effectively destroyed the movie’s market value, prompting them to seek at least $105 million in compensation.
Netflix has rejected the allegations and said it does not accept responsibility for the claimed losses. In a statement, the company argued that the filmmakers delivered the master copy without using standard industry security protections, including encryption, and therefore Netflix should not be held liable for any resulting damage.
The streaming service also emphasized that although it does not own the rights to Fortitude, it takes the security of film content seriously. Netflix said it launched an investigation into the theft after the incident and has continued monitoring piracy websites to ensure that unauthorized copies of the film do not appear online.
In addition, Netflix accused Afram’s legal team of acting in bad faith. The company said it chose not to share details of its internal investigation with the producer’s lawyers because it believed they were attempting to pressure Netflix into paying a large financial settlement instead of cooperating to address the situation.
The legal dispute is expected to focus on whether Netflix had a duty to safeguard the master copy of the film and whether the theft caused the financial losses claimed by the producers. The outcome of the case could have broader implications for how studios and streaming platforms handle the security of unreleased films during distribution negotiations.
