Terrence Howard Takes Legal Action Against CAA Alleging Breach of Fiduciary Duty and Racial Bias

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Renowned actor Terrence Howard has initiated legal proceedings against his former agency, Creative Artists Agency (CAA), citing breach of fiduciary duty, constructive fraud, and fraudulent representation.

In a press conference held on Friday (Dec. 8), Howard accused CAA of prioritizing its interests over his own and voiced concerns about conflicts of interest within the entertainment industry. He hinted that this lawsuit might have profound implications for his career and raised questions about potential racial bias in compensation practices.

During the press conference, Howard expressed disappointment, stating that he had "trusted CAA to look after me, and they looked after themselves." He went on to claim that he "never received the compensation as a producer or any of those things that are immediately given or asked for by agents of white actors."

According to reports, Howard alleges that while representing producers Lee Daniels and Danny Strong, CAA failed to act in his best interest regarding his role on Fox’s “Empire.” The complaint asserts that CAA served as the packaging agent for the project, waiving its standard 10 percent agency fee. Howard believed his compensation would be "built into the project’s budget and paid separately," unaware of potential conflicts of interest associated with packaging deals.

The lawsuit outlines Howard's initial appreciation for CAA's decision to avoid "double dipping" on fees, a practice banned since the Writers Guild of America's efforts in 2020. However, over time, Howard claims to have discovered that CAA prioritized its financial interests and those of the production companies it represented over his own.

Despite the success of "Empire," marked by critical acclaim and high ratings, Howard's compensation allegedly did not reflect the show's triumph. Initially paid $125,000 per episode as negotiated in his "pilot agreement," Howard's renegotiation efforts in 2016 led to a doubled per-episode fee. However, the lawsuit asserts that his overall compensation remained "below the standard for a lead actor on a highly successful show."

When Howard sought a salary increase comparable to lead actors in other successful shows, CAA allegedly provided misleading compensation figures, excluding relevant data from other popular shows. The complaint specifically notes instances where Kevin Spacey's pay for "House of Cards" and John Hamm's for "Mad Men" were highlighted, potentially contributing to Howard's inaccurate perception of his compensation's worth.

This legal action by Terrence Howard not only brings attention to his specific case but also raises broader questions about industry practices, conflicts of interest, and potential racial disparities in compensation within the entertainment sector.

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