Financial backer filing a lawsuit against the creators of 'Cabaret' as they announce the premature ending of the production.

In a surprising turn of events, James Lorenzo Walker Jr., an entertainment lawyer and investor based in Georgia, has filed a lawsuit against the principal producers of Broadway's "Cabaret at the Kit Kat Club." The suit, filed in New York State Supreme Court in Manhattan, alleges fraud and seeks to place all monies going to the partnership in trust until accounting or audits are complete.

The lawsuit names entities including ATG Productions, a New York-based theatrical company described as the lead producer of "Cabaret at the Kit Kat Club," with operational control over the finances, management, and creative decisions of the production.

The suit alleges that the producers have failed to pay out profits or provide accounting for funds, instead of payments, investors have been met with "stonewalling any share in partnership profits." This comes despite the show grossing over $90 million since opening on April 21, 2024.

The production spent $7.5 million to transform the theater into the show's setting, a portion of which will be borne by the partnership. The partnership may also be responsible for restoring the theater to its original state upon closing.

Operating profits totaled only $704,000 in the first 10 weeks of previews and performances, according to Broadway Journal. This is in contrast to weekly expenses averaging $1.5 million during the same period, with grosses reaching as high as $2 million, on the coat tails of performer Eddie Redmayne.

The contract with investors allows the general partners to apply for an exemption from requirements to file certified accounting statements with the New York State Department of Law. However, this has not alleviated the concerns of investors who feel they have been denied transparency, accountability, and financial benefits.

The suit alleges that the producers sought to divert payments, facilitate self-dealing among insiders and their affiliated entities, and deny outside investors transparency, accountability, and financial benefits.

The show, which was nominated for nine Tony awards and won for scenic design, has been running at the August Wilson Theatre, which was modified for this production and is reportedly owned by ATG Productions. Notably, the London West End production of "Cabaret at the Kit Kat Club" is currently in its fourth year.

The lead producers, including ATG Productions, have waived their fees and royalties for about a year. However, this has not been enough to assuage the concerns of investors who feel they have not received a return on their investment or a share of earnings.

The lawsuit was filed on behalf of Lorenzo and KKC Productions, created to pool $50,000 in investments. It seeks compensation, legal cost reimbursement, and damages. The early closure of the show, announced to be on Sept. 21, four weeks ahead of schedule after a 17-month run, may be a result of these financial disputes.

Billy Porter, who played the role of emcee, ended his run due to recovery from sepsis, possibly prompting the early closure. Despite this, the lawsuit continues to shed light on the financial management of the production and the concerns of its investors.

Financial backer filing a lawsuit against the creators of 'Cabaret' as they announce the premature ending of the production.