In a ruling that could have widespread repercussions in the TV industry, Fox has been hit with a $178.7 million judgment in its profit participation dispute with the team behind the hit series "Bones."
The ruling, which was decided in arbitration, excoriated senior Fox executives and criticized the studio and network for its conduct.
The award is among the largest of its kind and is the latest case to spotlight disputes over the accounting practices of major studios and whether they shortchange talent. The biggest award came in 2011 when a jury ordered Disney to pay $319 million in a profit participation case over "Who Wants to Be a Millionaire."
Arbitrator Peter Lichtman wrote in his decision that Fox engaged in "reprehensible conduct" and that top executives including 21st Century Fox President Peter Rice, Fox TV CEO Dana Walden and Fox TV Chairman Gary Newman gave unconvincing testimony.
"The more these individual testified," he wrote, "the more incredulous their testimony appeared." He criticized Fox for taking a "cavalier attitude toward its wrongdoing."
21st Century Fox said Wednesday it was seeking to void the punitive damages of $128.5 million, arguing that the arbitrator exceeded his powers. But the studio said it wasn't contesting the actual damages of $50.2 million.
"The ruling by this private arbitrator is categorically wrong on the merits and exceeded his arbitration powers," the studio said in a statement.
"Fox will not allow this flagrant injustice, riddled with errors and gratuitous character attacks, to stand and will vigorously challenge the ruling in a court of law," the company said.
The dispute pitted the show's stars and producers _ including actors David Boreanaz and Emily Deschanel and executive producer Barry Josephson _ against Fox, which both produced and aired the comedy-drama crime series from 2005 to 2017.
At the heart of the dispute was whether Fox engaged in so-called "self-dealing" _ hiding profits from the show to avoid compensating key talent and producers.
The arbitration decision was made Feb. 4 but wasn't made public until Wednesday.
"Bones" is one of the latest shows to become embroiled in a profit dispute involving so-called vertically integrated media companies.
AMC's "The Walking Dead" is currently inching toward a trial over its profit dispute with creator Frank Darabont.
