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The 2022 sequel to James Cameron’sAvatarwent on to become the highest-grossing film of the year. The saga of record-breaking performances continued with its online release as Avatar became “the biggest ever electronic home video release for Disney domestically.”However, the movie has once again taken the spotlight as its co-financer TSG sued Disney and its subsidiary 20th Century Studios, alleging that they have used every possible trick to withhold the hundreds of millions in profit.

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Disney Sued byAvatarCo-Financier TSG Entertainment Finance
FollowingScarlett Johansson’slawsuit against Disney, the film financier TSG has filed a lawsuit against the Walt Disney Studios for a breach of contract. The company reportedly started working with the Disney subsidiary Fox, now known as 20th Century Studios, in 2012 and has also been associated with Sony and Warner Bros.
The lawsuit claims that TSG Entertainment Finance has spent $3.3 billion on around 140 projects by“Fox,” which also includesThe Banshees of Inisherin, Avatar: The Way of Water, Deadpool,andThe Shape of the Water.The lawsuit claims that the studio is withholding “many millions”and is prioritizing the boost of its streaming services, Disney+ and Hulu, along with stock prices and executive compensation.

The lawsuit also mentions an independent audit of three films, revealing that it owed more than $40 million, which could potentially be“hundreds of millions.”According to the lawsuit, the 20th Century Studios had a deal with HBO for a“Pay 1 window,”which was allegedly altered in favor of Disney’s streaming services Disney+ and Hulu after it acquired 20th Century in 2019.
TSG claims that while the negotiations made in 2019 have proved to be beneficial to the studio and its executives, it has cost financing companies“hundreds of millions of dollars.”The company is represented by John Berlinski, who also represented Johansson during her lawsuit against Disney Studios.

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Netizens React to TSG’s Lawsuit Against Disney
TSG’s attorney, John Berlinski, claimed that the studio tried every trick to withhold the hundreds of millions. People took to social media to share their reaction to another alleged breach of contract against Disney after Scarlett Johansson. Sharing their thoughts on Twitter, one user wondered if the new lawsuit makes the studio“cheap”and“thieves.”
Man I’ve known TSG Entertainment has been involved in SO MANY films, can’t believe they haven’t been treated respectfully

— N. M. Flores (@IAmNMFlores)July 16, 2025
An example of why Disney should not buy Fox.
— Elijah S. Abrams (@ManPalisades1)June 27, 2025
Anytime anyone in the industry ask for fair pay from Disney.pic.twitter.com/rvI2Cmtlrv

— Evan Castelloe (@EvanCastelloe)July 05, 2025
I am enjoying Disney burn to the ground each day, well deserved.
— FACELESS ART 📽 (@Facelessart305)July 05, 2025
I meam, yeah.pic.twitter.com/CnpTHAACQM
— Barbatachtian Films (@ianmakesfilms)July 20, 2025
And yet they can’t pay a little more for words and acting.
— RHNintendo (@RHNintendo)August 08, 2025
So you are saying Disney is cheap & are thieves???pic.twitter.com/wKcB0LWeSS
— Van (@vanman_1000)July 05, 2025
As the lawsuit comes amid the ongoing SAG-AFTRA strikes, many took the opportunity to point out how “greedy” the Hollywood studios could be. One user said,“And yet they can’t pay a little more for words and acting.”Many also claimed that Disney should not have acquired 20th Century Studios. Others stated that the TSG had been associated with some of the best films in Hollywood and that the studios should have been more respectful toward them. The studio has not said anything regarding the lawsuit yet.
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Source:Discussing Film
Laxmi Rajput
Senior Writer
Articles Published :3448
Laxmi Rajput is a Senior Writer at FandomWire, with over 3,300 articles published covering film, TV, and pop culture. With a degree in Broadcast Journalism and over three years of experience in content writing, she pivoted to entertainment journalism because let’s be honest, superheroes, sitcoms, and Netflix binges are way more fun. Laxmi frequently covers Marvel, Harry Potter, Star Wars, and popular TV shows, offering both fan-first enthusiasm and thoughtful analysis. Her work often dives into Marvel theories, revisits the genius of The Big Bang Theory, or unpacks the Netflix phenomenon of Stranger Things.