A Chinese investor has filed a lawsuit against several theatrical licensing companies and individuals, alleging financial misconduct that resulted in significant personal losses.
Yebo "Boris" Cao accuses Broadway Licensing Group LLC (BLG), HTL Theatrical Licensing LLC (HTL), KMS Licensing LLC (KMS), The Karlek LLC, Harmonia Holdings LTD, and individual defendants Todd Abbott, Bradley Banks, Kevin McCollum, and Xiaohong "Sophie" Qi of misappropriating investments for personal gain. According to the complaint, Cao was an original founding investor in HTL with an ownership interest in BLG. He claims that despite BLG's success and its sale to Concord Music Group for $35 million, he lost over 90% of his investment due to alleged breaches of fiduciary duty and contract.
The lawsuit alleges that Abbott and other individual defendants manipulated their positions within HTL and BLG to benefit themselves financially at the expense of minority investors. This included approving insider loans with interest rates as high as 440% annually, benefiting entities owned by Abbott and McCollum, while depriving Cao of similar opportunities. The complaint also cites a lack of transparency regarding financial transactions connected to BLG's sale proceeds and claims that Abbott ceased communications with minority investors about the status of their investments.
Cao seeks damages for his financial losses and brings derivative claims on behalf of BLG against its board members for breach of fiduciary duties. He also seeks equitable relief to recover assets allegedly diverted through self-dealing transactions.
The plaintiff is represented by attorneys from LegalGP. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-04510-DG-RML.