The legal heat keeps mounting on David Bergstein, the topper of Capitol Films and ThinkFilm, as Allied Advertising has filed a lawsuit against them alleging $4.2 million in unpaid bills.

Allied, which handles ads and promotions for feature films, filed the suit Wednesday in Los Angeles Superior Court. It accuses Bergstein of racking up $1.9 million in debt as of November and another $2.2 million this year while continuing to spend on acquisitions.

“Between January and May 2008, while most of the ThinkFilm debt to Allied was outstanding, defendants have gone on a lavish film licensing buying spree at various film festivals around the world, including a film about director Roman Polanski scheduled for release on (HBO) later in 2008,” Allied alleges in the suit. “In addition, defendants now pre-pay for print and advertising services and that only for so long as Allied elects to do business with ThinkFilm at all.”

Allied said it sent a final demand for the funds on May 12.

“Notwithstanding these demands, Bergstein has, on information and belief, directed ThinkFilm to simply ignore the demands of Allied,” it added. “Neither ThinkFilm nor Bergstein have ever disputed the obligation to pay the $4.185 million due and owing to Allied.”

- Read More