Investor suing ‘Cabaret’ Producers as Show Announces Early Closing

Life may be a cabaret. But Broadway’s “Cabaret” is now also the subject of a real-life lawsuit.

via: Broadway World

An investor has filed a lawsuit against the lead producers of Cabaret at the Kit Kat Club on Broadway, alleging fraud, breaches of fiduciary duty, and mismanagement of funds tied to the revival which reportedly cost upwards of $24 million. The production is set to close earlier than expected on September 21st.

The complaint, filed September 4 in New York Supreme Court by attorney and investor James Lorenzo Walker, Jr., asserts that producers engaged in "a deliberate scheme intended to strip him and other investors of their investments in, and partnership profits from, the Broadway production"

Walker invested $50,000 into the show through KKC Productions NY Limited Partnership just days before it opened in April 2024. According to the filing, the production has grossed more than $90 million but "Plaintiff has not received a return of his investment or a share of profits from the Production"

The lawsuit alleges that investors were "induced to invest cash into multi-layered structures designed to conceal revenues, divert payments, and facilitate self-dealing among insiders and their affiliated entities."

It further claims that the defendants - including ATG US KKC GP, LLC, AK Theatricals US LLC, Wessex Grove USA LLC, and SBT-USA, Inc., along with producers Adam Speers, Gavin Kalin, Joseph Smith, John Brant, Ben Lowy, Emily Vaughan-Barratt, and Hunter Arnold - denied access to partnership records despite repeated requests.

In a prior demand letter, Walker’s counsel accused the producers of "failing to produce financial records despite repeated written requests" and of "concealing profits, including revenue from ticket packages, in violation of Article XIV(f) of the Partnership Agreement"

The letter also alleged that producers "inflated production and renovation costs to benefit affiliated entities through non-arm’s-length transactions" and "preserved General Partner compensation while failing to return capital to Limited Partners"

The suit seeks damages for breach of contract, fraud, negligent misrepresentation, unjust enrichment, and other claims. Walker is asking for the return of his $50,000 investment, attorneys’ fees, and a full accounting of the show’s finances, including box office statements, bank records, and contracts with affiliated entities.

Walker told BroadwayWorld that his lawsuit is about financial openness rather than personal conflict with the producers. "This is a case about transparency," Walker said. "For several months I tried to get an idea of what was going on financially and where revenues were going. I repeatedly asked for full transparency, including access to records, and got no cooperation."

He noted that while weekly wraps provided by the production show gross box office figures, "they don’t explain where anything goes." Walker said he requested financial documents and answers to specific questions about expenses such as advertising, royalties, and theater costs, but was denied.

"All we’ve asked, repeatedly, is for full financial transparency and where the approximately $90 million was spent," Walker said. "It’s not personal and it’s not meant to attack anyone or shake the credibility of the Cabaret brand. Investors simply deserve honest answers."

In a statement, the Producers of Cabaret dispute Walker was not provided with the opportunity to review financial statements, writing "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. 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."

No court has ruled on the case, and all of Walker’s claims remain allegations at this stage.