Gurneys reject fraud allegations

Gurney show Duck Dynasty has been cancelled by A&E

The dismissed founders of ITV America-owned US prodco Gurney Productions have rejected a “baseless” fraud lawsuit against them, accusing ITV of a “greedy corporate” takeover.

C21 reported yesterday that ITV America fired Scott and Deirdre Gurney for violating non-compete agreements and is suing them for fraud.

The news came just days after UK-based ITV temporarily suspended the couple amid an internal financial investigation.

But the Gurneys – via their attorney – have now released a statement denying the allegations.

“This is a blatant, desperate attempt at intimidation by ITV, a classic greedy corporate grab, solely for the purpose of enriching one shareholder at the expense of the founders who built this company into the highly valued, sustained financial success story that it is,” said Lavely & Singer’s Michael E Weinsten in the statement.

“The claims against the Gurneys are completely baseless and fraught with contradictions, inconsistencies and outright falsehoods. My clients are considering all of their legal options and are preparing to respond accordingly.”

Deirdre and Scott Gurney

ITV’s lawsuit alleges that the Gurneys secretly established a new company, Snake River Productions, in August that was competing with Gurney Productions, the firm behind Duck Dynasty that ITV bought for US$40m in 2012.

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.

ITV’s lawsuit outlines: “After the Gurneys sold a majority interest in the company to ITV and promised, among other things, not to compete with the company while they were employed by the company, the Gurneys secretly formed a new production company that they owned and controlled, Snake River Productions.

“They formed Snake River as part of an unlawful plan to misappropriate the company’s corporate opportunities for themselves and to artificially inflate the company’s EBITDA.

ITV has brought in 5×5 Media co-founder Craig Armstrong to serve as interim CEO of Gurney.

The revelations came after A&E last month brought down the curtain on Gurney’s reality hit Duck Dynasty, with the 11th season set to be its last.