- Spacey has always denied allegations that he sexually harassed young employees.
Kevin Spacey will pay $1 million to the creators of House of Cards to resolve allegations that he sexually harassed young employees of the show.
MRC, the production company behind the show, removed Spacey from the final season of House of Cards in 2017 and sought to recoup the costs of scrapping the final season and replacing him.
An arbitrator found the program’s young employees’ allegations credible and Spacey, who has always denied the allegations, faced a $31 million judgment in the case.
But MRC and Spacey have reached a deal under which the actor will pay just $1 million (£791,000) – in installments equal to 10 per cent of his after-tax income – to the company over the next few years instead of the 36 dollars. millions he owed, including interest, Disk reported.
In exchange, Spacey will help MRC in its attempt to recover costs from its insurance company.
MRC, the production company behind the show, removed Spacey (pictured) from the final season of House of Cards in 2017 and sought to recoup the costs of scrapping the final season and replacing him.
Kevin Spacey (left) on the show House of Cards, from which he was fired in 2017.
MRC previously sued the Fireman’s Fund and Lloyd’s of London, saying Spacey’s absence from House of Card was covered by cast insurance policies, which generally protect production companies if an actor becomes too ill to perform.
But the lawsuit was dismissed twice last year because the judge did not believe Spacey’s alleged admission to a sex addiction treatment center qualified as a claim under the policy.
“The court concludes that these policies simply do not insure against this particular risk, and that neither party was actually contemplating coverage for this type of thing at the time the policies were signed,” said Judge Mark Epstein at that time. according Variety.
While the judge ruled that MRC can no longer pursue Lloyd’s, the production company can once again change its lawsuit against Fireman’s Fund, for which it has now been promised Spacey’s help.
One of the things the judge criticized in the lawsuit was MRC’s failure to clarify what exactly Spacey’s illness is and how this would make him too sick to perform in House of Cards.
Spacey previously fought MRC’s attempt to access his medical records to answer these questions, but promised to provide his medical records and allow himself to be examined by doctors as part of the settlement, which was reached on December 18.
A few weeks later, on January 2, MRC filed the newly amended complaint against Fireman’s Fund. In it, he said Spacey couldn’t perform on the show because he was being treated for anxiety and depression.
The Firefighters Fund tried again to have the lawsuit dismissed, which they described as “bordering on absurdity.”
The insurance company argued that MRC has significantly changed its position after it first claimed in the arbitration case against it that Spacey was removed from the show for violating the sexual harassment policy, and not because of his illness.
Additionally, he alleged that Spacey’s dismissal was due to Netflix’s announcement not to air any new episodes of House of Cards featuring the actor, which allegedly forced MRC to drop him.
His lawyers reportedly sent separate emails to Netflix, with one allegedly denying that Spacey was sick after the announcement.
MRC is going after Fireman’s Fund for $150 million, as well as punitive damages for denying its initial claim. The trial is expected to begin in June.