Rhythm & Hues Former Owners Sued

Hollywood Reporter: Former Rhythm & Hues Owners Sued for Having “Pillaged” Oscar-Winning VFX House (Exclusive)

Looks like they discovered some questionable funnelling of money to fake businesses. If you read further into the article, it seems like an inditement of the entire VFX business model.

Part of the lawsuit is based on R&H accepting “harmful contract terms dictated to them by this handful of Studios.”

It goes on:

R&H bid aggressively for studio films, sometimes submitting bids below calculated out-of-pocket expenses, or other times not obtaining enough information for an informed bid. “These reckless and/or ignorant bidding practices ultimately led to R&H entering into numerous toxic contracts,” says the complaint. "Whether done purposely or carelessly, according to Buyyala, the bidding process was ‘flawed’ because the bids did not accurately account for the work to be completed by R&H.

The VFX bidding process is ‘flawed’? No shit.

Photo Credit: Judge Doom by Me2