Splash News and Picture Agency has filed for Chapter 11 bankruptcy following their legal battle with Meghan Markle.
“Splash’s financial problems stem from three sources,” Splash president Emma Curzon shared in a declaration submitted as part of the bankruptcy, according to a Hollywood Reporter piece published Thursday. (RELATED: Meghan Markle Wins Privacy Suit Against British Tabloid Over Letter She Wrote To Her Father)
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“As a consequence of the global pandemic the availability of celebrity images has declined and budgets within media companies have been cut to reflect wider macro-economic challenges,” the declaration added. “This situation has been exacerbated by two ongoing litigation cases and the costs of defending these cases.” (RELATED: Meghan Markle, Prince Harry Enjoying New Life: ‘A Weight Has Been Lifted,’ Friend Says)
One of the legal cases mentioned involves the Duchess of Sussex and pictures obtained by the agency from a “private family outing” near their home, at the time, in Canada.
In December, the BBC and other media outlets reported a settlement in the case involving the royal family, with Splash stating that it agreed “it will not take unauthorized photographs of the family of the Duke and Duchess” of Sussex, the outlet noted.
However, the matter might not be fully be resolved as the two sides have reportedly been “unable to agree” on a “financial settlement.”
“The case involves free speech related issues under United Kingdom law and, unfortunately, has proven to be too unbearably expensive for Splash to continue its defense,” Curzon shared.
“Furthermore, if the plaintiffs were to prevail in that case it would likely result in a large attorney fee award against Splash,” Curzon added. “Notwithstanding the merits of the case the company has sought to settle this matter but has been unable to agree [on] a financial settlement within its resources.”