Investor Sues Producers of “Cabaret At The Kit Kat Club”
An investor in the Broadway show Cabaret At The Kit Kat Club has filed a lawsuit against the producers, claiming that despite the production grossing over $90 million, he has not seen a return on his $50,000 investment and has been denied access to financial records.
Details of the Lawsuit
James Lorenzo Walker, Jr., an Atlanta-based entertainment attorney, submitted the legal complaint on September 4 in New York Supreme Court, alleging that the producers engaged in a “deliberate scheme” to deprive him and other investors of their due profits.
Allegations Against the Producers
The lawsuit asserts, “Despite Cabaret grossing over $90 million since its opening on April 21, 2024, Plaintiff has yet to receive any return on his investment or share of profits.” Walker claims he has been denied access to important financial records and accounting.
Claims of Financial Misconduct
The complaint describes the defendants’ actions as indicative of a broader scheme in theatrical financing that misleads investors, conceals revenues, diverts payments, and allows self-dealing among insiders while denying transparency to investors.
Producers’ Response
Producers, led by ATG Entertainment, have strongly refuted Walker’s claims, calling them baseless. They stated, “While we are proud of Cabaret’s artistic success, the production has not been in a financial position to distribute funds to investors.”
Show’s Decline and Upcoming Closure
The lawsuit arrives at a challenging juncture for Cabaret, which is set to close a month early on September 21, partly due to star Billy Porter’s health issues. The show’s attendance has significantly dropped, with weekly grosses plummeting from $1.2 million to as low as $380,052, while weekly running costs exceed $1 million.
Background on Investor
Walker invested in Cabaret shortly before its April 2024 debut through KKC Productions NY Limited Partnership. He has a background as a co-producer and investor in other successful theater productions. The lawsuit has gained attention following its initial reporting by Philip Boroff’s Broadway Journal newsletter.
