Netflix Faces $105 Million Lawsuit After Unreleased Nicolas Cage Film Stolen From Los Angeles Office

A Swiss filmmaker has sued Netflix for $105 million after an unencrypted copy of an unreleased World War II thriller starring Nicolas Cage was stolen from the company's Los Angeles office. The dispute centers on whether Netflix bears responsibility for storing the sensitive digital file securely, or if the filmmakers failed to follow industry-standard encryption protocols. The case raises important questions about content security obligations in film acquisitions.

The Theft and Timeline

Producer and writer Simon Afram hand-delivered a digital cinema package containing "Fortitude" to Netflix headquarters at Sunset Bronson Studios on June 15. According to the lawsuit, the associate producer explicitly informed Netflix that the file was unencrypted and instructed the company to delete it after internal screening and to notify him when the drive was ready for pickup.

Ten days later, Netflix acknowledged the drive had been stolen from office desks during a security breach. Sean Berney, the company's head of film acquisitions, wrote in an email: "This is a first for us. Unfortunately, someone stole a good amount of drives from our office desks this past week." Despite repeated attempts to arrange retrieval, Netflix remained unresponsive before disclosing the loss.

The Production and Financial Stakes

Afram developed "Fortitude" over seven years with an investment of approximately $45 million, according to court documents. The film, directed by Simon West and featuring Nicolas Cage alongside Ben Kingsley, represents a significant production commitment. Netflix first expressed acquisition interest after receiving promotional materials in December, requesting a working cut in June to evaluate the project for potential purchase.

The $105 million claim reflects not only the production cost but also damages related to compromised sale negotiations and loss of competitive advantage. The lawsuit argues that Netflix's failure to secure the unencrypted master copy in a protected location directly damaged Afram's ability to sell the film to other distributors or markets.

Competing Claims of Responsibility

Netflix disputes liability, stating in a company statement: "Netflix disputes any claim that it bears the risk of loss for a film delivered without the proper industry-standard safeguards." The company maintains that standard practice requires either password-protected links or encrypted digital cinema packages with secure key delivery systems, neither of which were implemented.

Afram's legal team counters that Netflix's own acquisition instructions created the unencrypted situation. The complaint states that Netflix directed filmmakers to provide an unencrypted key, then failed to follow basic security protocols by leaving the drive accessible on office desks rather than in a secure storage facility. Netflix has offered to monitor piracy sites for unauthorized distribution and conducted an internal investigation but claims no responsibility for the loss itself.