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ITV appeals Gurney ruling

Gurney Productions’ Duck Dynasty

ITV America has moved quickly to appeal against a US judge’s decision to reinstate the dismissed founders of its prodco Gurney Productions.

Scott and Deirdre Gurney were removed from the Duck Dynasty producer in December last year for allegedly violating non-compete agreements, with ITV suing them for fraud amid an internal financial investigation.

The couple subsequently counter-sued ITV for more than US$100m in damages and sought to retrieve control of their company.

A US judge yesterday ruled that the pair should be reinstated at the firm, but ITV quickly appealed against the decision, meaning the Gurneys are still unable to return. Both parties released statements yesterday following the ruling and subsequent appeal.

The Gurneys’ attorney Michael Weinsten said: “We are grateful the Gurneys’ request for an injunction has been granted by the court, which reviewed the facts of the case and, based on those facts, agreed that the Gurneys should be reinstated as the controlling managers of Gurney Productions.

“The Gurneys are proud of the company they founded and are looking forward to rejoining their team to continue building upon the consistent growth they have achieved over the past 12 years. We have always believed the truth was on our side and today the judge reaffirmed our position.”

Deirdre & Scott Gurney

Deirdre and Scott Gurney

ITV provided the following statement: “ITV respects the court’s ruling today in which the judge expressly declined to opine on the merits of ITV’s claims and instead decided on a preliminary issue of contractual interpretation.

“We remain very confident of success in the merits of our case, and fully expect to win once the allegations of deceit, fraud and self-dealing by the Gurneys are exposed at a full trial. ITV is appealing the judge’s preliminary ruling, and neither Scott nor Deirdre Gurney can return to Gurney Productions until our appeal has been decided.”

ITV’s lawsuit alleges that the Gurneys secretly established a new company, Snake River Productions, last August that was competing with Gurney Productions.

It also claims that, one month later, Snake River bought distribution rights to reality show Northern Territory from Gurney Productions for US$3.6m to inflate Gurney’s EBITDA.

Meanwhile, the Gurneys allege that ITV is trying to change the cost of shares in the company in its favour. ITV board members Brent Montgomery, Andrew Garard and David McGraynor were also named as defendants in the suit.

The allegations came after A&E brought down the curtain on Duck Dynasty in November, with the current 11th season set to be its last.

ITV paid US$40m for a 61.5% controlling stake in Gurney Productions in 2012.

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