Most of us don’t think of A-list movie stars as having trouble paying for anything they want, but even when you’re making millions, it’s possible to spend more than you make. It can happen to the best, either through irresponsibility or mismanagement.
Because the extremely wealthy usually hire people to manage their money for them, everyone tends to start pointing fingers when things go wrong and it’s usually up to the courts to determine who was ultimately at fault.
According to The Management Group (TMG), Johnny Depp, the 53-year-old Oscar nominee and their former client, has been spending $2 million a month and allegedly still owes them $4.2 million for a loan they gave him. The unpaid loan allegedly forced them to start foreclosure proceedings on properties owned by the celebrity.
TMG claims it has been doing everything in its power to curb Depp’s outrageous spending habits for the better part of two decades. But the actor allegedly failed to respond appropriately, blamed his business managers, and continued to overspend.
Despite the warnings the company claims it repeatedly gave the actor, Depp allegedly continued to spend more money than he had by buying more than a dozen homes (including a French castle), private islands in the Caribbean, penthouses, a horse farm, a yacht, dozens of luxury cars, and collecting famous paintings and Hollywood memorabilia according to the lawsuit. In addition, TMG is also alleging Depp spends hundreds of thousands of dollars a month on private planes, wine, and a staff of 40 people.
The bank further alleges that the first time it demanded Depp repay the loan in question, the bank ended up extending him another loan because he couldn’t pay up and they didn’t want him to face the kind of humiliating financial crisis in which he is currently embroiled.
Depp tells the story a little differently.
The actor fired the company last year and followed up by filing his own lawsuit against them in January. Depp alleges the company took out loans without his approval, mismanaged his money, and hid the facts of the dire financial situation he was in. Depp’s lawsuit is seeking $25 million in damages.
The firm denies the allegations contained in Depp’s lawsuit, claiming the actor only filed the lawsuit in order to interfere with their attempts to reclaim the money he allegedly owes them.
Which side of the story is the more accurate one will be determined in the months to come as each party presents evidence to support their case.
This is not the first time Depp has been sued for money. When he and his wife of 18 months, Amber Heard, broke up, she lost no time in suing him for the money she claimed he owed her. The dispute was eventually resolved outside of court with a settlement in which Depp agreed to pay his ex-wife $7 million. Such a large payout can’t have helped Depp’s already struggling finances, and if she’s the gold digger some people have claimed she is, her departure from his life was not a moment too soon.Super Lawyers named Illinois business trial attorneys Peter Lubin and Vincent DiTommaso Super Lawyers in the Categories of Class Action, Business Litigation and Consumer Rights Litigation. DiTommaso-Lubin’s Illinois business trial lawyers have over a quarter of century of experience in litigating complex class action, copyright, non-compete agreement, trademark and libel suits, consumer rights and many different types of business and commercial litigation disputes including lawsuits between businesses or between shareholders and owners of the same business. Our Evanston and Des Plaines business dispute lawyers handle emergency business law suits involving copyrights, trademarks, injunctions, and TROS, covenant not to compete, franchise, distributor and dealer wrongful termination and trade secret lawsuits and many different kinds of business disputes involving shareholders, partnerships, closely held businesses and employee breaches of fiduciary duty. We also assist businesses and business owners who are victims of fraud. You can contact us by calling (630) 333-0000 or our toll free number (877) 990-4990. You can also contact us online here.