Brooklyn movie sequel: Minority investors file new lawsuit against Steiner Studios in ongoing legal fight

Lights, cameras — and legal action.

A minority-run movie business, in a Manhattan Supreme Court filing, offered a less-than-rave review of longtime business partner Steiner Studios, claiming they received none of the multi-million dollar profits generated since 1998 by the lucrative development at the Brooklyn Navy Yard.

“The reality hasn’t lived up to the dream,” said Joseph Wilson, longtime president of New York Studios. “We overcame incredible odds, put together a winning proposal for the development rights ... But our knight in shining armor was not so shiny.”

According to Wilson, Steiner ignored their agreement after NYS acquired 10% ownership rights following their victory in a contentious fight against another bidding group headed by since-disgraced Tinseltown titan Harvey Weinstein and Oscar-winning actor Robert DeNiro.

Steiner and NYS teamed up to create a business named Eponymous to lease the land and develop the studios, court papers said, but NYS alleges they have yet to reap any financial benefits from the deal.

“We were betrayed by Douglas and David Steiner,” Wilson said.

The 55-page complaint charges what was initially viewed as a landmark triumph for New York Studios instead became a pyrrhic victory as Steiner Studios expanded into the largest studio in the country east of California — while NYS was left on the outside looking in.

“While the Steiners have reaped millions of dollars ... NYS has not seen a penny,” the lawsuit alleged. “Unless the court grants monetary and injunctive relief, NYS will continue to be shut out of opportunities and income. ”

The plaintiffs also claim they were never given notice of expansion at the studio nor offered an opportunity to participate in the growth.

Steiner Studios, through a spokeswoman, declined comment on the legal action.

The lawsuit is actually a sequel: It’s the third filed by the group against Steiner, although Wilson noted “it’s the first one done correctly.”

The first, filed in 2012, was dismissed in April 2016 after Steiner argued, among other things, that there was a statute of limitations on the NYS claim for payment. A year later, the second suit was filed — with a judge eventually ruling Steiner did not have “fiduciary duties” to NYS under state law.

But the latest effort includes new attorneys and a different take on the battle, with court documents asserting the new filing includes none of the previously dismissed claims.

“It’s inexplicable, whether it’s racism or greed or some combination,” said NYS lawyer Rob Valli. “To not pay them for all these years is grossly unfair. We’re asking the court to put a value on the distribution that should be coming to New York Studios.

“It’s not zero, that we’re sure of.”

Wilson recalled the challenging road facing NYS when they sought a piece of the new Brooklyn development with an uncertain future.

“We were a multi-ethnic group, started by three African-Americans,” he recalled. “People of color were our majority shareholders. We drafted a diversity plan for the studio to make sure we were inclusive with the community in terms of hiring.”

But his operation now alleges Steiner Studios “concealed critical information” from NYS by “concocting financial statements” omitting certain details.

“NYS has repeatedly sought and has been refused financial and operating information required under the Operating Agreement and as a matter of the Steiners’ fiduciary duties,” the court papers said.

Wilson recounted his last in-person contact with owner David Steiner was 14 years ago, when the top grossing movies included the “Indiana Jones” sequel “Kingdom of the Crystal Skull” and the hit “Slumdog Millionaire.”

“The only thing I’ve seen from David Steiner was he took me out to lunch for sushi,” said Wilson. “A $12 California sushi roll, back in 2008.”

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