Former Golden Globes Owners Sue Penske Media for Fraud

Members of the Hollywood Foreign Press Association (HFPA), the former owners of the Golden Globe Awards, have filed a lawsuit against Penske Media Corporation and others, alleging fraud in the acquisition of the prestigious awards show. The suit, lodged in federal court in California, claims that Penske Media and its owner, Jay Penske, colluded with Eldridge Industries and its CEO Todd Boehly to orchestrate a backlash and boycott against the Globes. The goal, according to the lawsuit, was to devalue the show and acquire it under fraudulent pretenses, aiming to establish monopolistic control over the Hollywood trades, awards, and advertising markets.

The legal action states that Boehly and Eldridge concealed Penske's involvement in the 2023 deal from the HFPA board, a detail that would have prevented the acquisition's approval. Penske Media's portfolio includes publications such as Variety, Deadline, The Hollywood Reporter, Rolling Stone, and Billboard, as well as Dick Clark Productions, which is involved in producing several awards shows and is now a co-owner of the Golden Globes.

The lawsuit further alleges that promises made to HFPA members, including lifetime Golden Globes tickets and voting privileges, were reneged upon by the buyers with the imposition of unworkable conditions. The plaintiffs also claim that Penske and Boehly manipulated California's nonprofit laws, using the Golden Globe Foundation, established as the successor to the HFPA's philanthropic arm, to drive down the acquisition price. They assert that the foundation now operates as an extension of the for-profit entity created by Penske and Boehly, Globes LLC.

The turbulent 2020s for the Golden Globes have included significant controversies, notably a 2021 Los Angeles Times investigation that revealed the HFPA had only one Black member. This led to public outcry and a boycott that resulted in NBC withdrawing its broadcast of the awards in 2022. The current lawsuit contends that Boehly and Penske "surreptitiously instigated" this boycott and utilized Penske's media outlets to amplify it.

Following the 2023 acquisition and subsequent reorganization, the Golden Globe Awards found a new broadcast home on CBS.

Neither Todd Boehly nor his company, Eldridge Industries, were named as defendants in the lawsuit. The reasons for their exclusion were not immediately clear, and representatives for the plaintiffs declined to comment. An email seeking comment from Boehly and his company also went unanswered.

The lawsuit seeks a minimum of $150 million in damages and requests the court to nullify the agreement that led to the dissolution of the HFPA. A statement from the current owners of the Golden Globes dismissed the lawsuit, calling it "absurdity and irrationality" from the "defunct organization formerly known as the HFPA." The statement also criticized the former members' attempt to leverage the Golden Globe Foundation for personal gain, diverting resources from charitable causes, and reiterated the organization's past criticisms regarding ethical failures, non-inclusivity, racism, and misconduct.