Rinsch Faces Lawsuit for Misappropriating Funds
A U.S. filmmaker named Carl Erik Rinsch is being sued by Netflix for allegedly misusing funds that were meant to finance a science-fiction TV series. Rinsch reportedly made a profit of over $20 million from a bet on dogecoin, but Netflix claims he used the production funds to place risky bets on a biotech company and the S&P 500 before investing in the cryptocurrency.
Risky Bets on Gilead Sciences and the S&P 500
Prior to betting on dogecoin, Rinsch is accused of using approximately $11 million of the production funds to make risky bets on Gilead Sciences’ stock and the declining S&P 500 index. However, both bets failed and Rinsch lost $5.9 million in just a few weeks.
Unraveling Mental Health Issues
Following his losses, Rinsch’s behavior reportedly became more erratic, which Netflix executives only became aware of after his wife came forward about his mental health problems. As a result, Netflix decided to stop funding the TV series in March 2021.
‘God Bless Crypto’ and Shopping Spree
Despite the fallout with Netflix, Rinsch used the remaining $4 million to purchase dogecoin. When he eventually sold his dogecoin holdings in May 2021, his account had a balance of over $27 million. Rinsch went on a spending spree, buying luxury cars and other expensive items worth as much as $8.7 million.
Dispute Over Breach of Contract
Rinsch, who has autism and ADHD, claims that Netflix breached the terms of the contract. He is seeking $14 million in damages from the streaming service provider. An arbitrator is currently reviewing both parties’ arguments and will make a ruling.
Hot Take: Netflix Takes Legal Action Against Filmmaker for Misusing Funds
Netflix has filed a lawsuit against filmmaker Carl Erik Rinsch for allegedly misappropriating funds intended for a TV series and using them to place risky bets on biotech stocks, the S&P 500, and dogecoin. Rinsch reportedly made a significant profit from his dogecoin investment but lost millions in other bets. The filmmaker’s mental health issues came to light, leading to Netflix’s decision to stop funding the series. Despite this, Rinsch used the remaining funds to buy more dogecoin and went on a spending spree. Rinsch claims that Netflix breached the contract, while the streaming service seeks damages from him.
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