By Zoey

Netflix is facing a $105 million lawsuit over allegations that the streaming giant lost an unencrypted digital copy of an unreleased $45 million Nicolas Cage thriller, potentially exposing the film to piracy, unauthorized distribution and damaging leaks before its planned release.

The lawsuit was filed by Op-Fortitude Ltd. and its owner, Swiss film producer and financier Simon Afram. The plaintiffs accuse Netflix of failing to properly secure a digital master of the upcoming film, “Fortitude,” and later attempting to minimize the seriousness of the incident. Netflix has strongly denied wrongdoing and maintains that the filmmakers voluntarily delivered the movie without industry-standard security protections.

“Fortitude” is based on the real-life World War II Operation Fortitude, a large-scale Allied deception campaign intended to mislead Nazi Germany about the location of the D-Day invasion. The historic operation relied on an elaborate network of fake military units, double agents, misleading intelligence and false radio communications designed to convince German forces that the Allied invasion would take place somewhere other than Normandy.

The lawsuit alleges that the disappearance of the film’s digital master placed one of the production’s most valuable assets at risk and threatened the movie’s commercial prospects. According to the plaintiffs, the loss compromised the film’s potential first-to-market advantage and weakened its value to distributors and other potential buyers.

The producers said the incident forced them to temporarily suspend marketing and sales efforts during a critical period leading into awards season. They argue that uncertainty surrounding the security of the film created significant financial risks and undermined efforts to position the production for a major theatrical and international release.

According to the complaint, test screenings produced an 82% “top-two box” audience score, meaning that 82% of viewers placed the film in one of the two highest rating categories. The plaintiffs cited those results as evidence of the movie’s commercial potential and estimated that the project could generate at least $112.5 million in revenue.

That projected figure is approximately two and a half times the film’s reported $45 million production budget. The lawsuit argues that the movie’s anticipated financial performance made the loss of an unprotected digital master especially damaging because an unauthorized release could significantly reduce its value before it reached theaters or secured distribution agreements.

The dispute reportedly began after Netflix requested a private screening of the film sometime between late 2025 and the middle of 2026. The parties disagree over how the movie was delivered and who was responsible for ensuring that the digital copy was adequately protected.

The plaintiffs alleged that Netflix requested an unlocked or unencrypted version of the film to simplify the screening process. Netflix disputed that allegation and said security measures such as password protection and encryption are standard practices within the entertainment industry.

Netflix maintains that the filmmakers made the decision to provide an unencrypted version of the movie and that the company should not be held responsible for the risks associated with a film delivered without the appropriate safeguards.

According to the lawsuit, the producers informed Netflix verbally and in writing that the drive containing the film was unencrypted. The plaintiffs also said they instructed the company to remove the movie files from its projection system after the private screening had been completed.

The complaint states that an unencrypted digital master drive was delivered to Netflix’s Hollywood studio on June 15, 2026. Netflix reportedly conducted the private screening the following day.

After the screening, the lawsuit alleges that the drive was left unattended on an office desk without adequate physical or digital security protections. The plaintiffs claim the drive later disappeared from the office.

The producers further alleged that Netflix failed to immediately disclose what had happened. According to the lawsuit, the plaintiffs repeatedly attempted to arrange the return or pickup of the drive between June 17 and June 25 but received delays or no response.

The complaint states that a Netflix executive sent an email on June 25 informing the filmmakers that someone had stolen a significant number of drives from office desks during the previous week.

Netflix has rejected claims that it attempted to conceal the incident. The company said it notified the appropriate parties after its team became aware that the drive was missing and has maintained that it responded appropriately based on the information available at the time.

The plaintiffs also accused Netflix of attempting to minimize the potential consequences by suggesting that the stolen drive required an encryption key to access the film. According to the lawsuit, Netflix knew that the drive was unencrypted and that the movie could potentially be accessed without additional security credentials.

The complaint also alleges that Netflix offered to reimburse only the cost of the physical storage drive and referred to the asset as “missing” rather than describing it as stolen.

Netflix disputed the plaintiffs’ interpretation of the events and said it does not accept responsibility for the loss of a film delivered without what it considers proper industry-standard protections.

The company said it does not own the rights to “Fortitude” but takes the protection of film and television content seriously. Netflix said it has implemented additional measures to assist the filmmakers and their production team, including conducting an internal investigation and monitoring known piracy websites for signs that the movie has been distributed or offered for sale without authorization.

Netflix also said its security team has found no evidence that “Fortitude” has been leaked or made available through unauthorized channels.

The lawsuit raises additional questions about the company’s internal response to the disappearance. The plaintiffs accused Netflix and its outside legal representatives of refusing to answer basic questions about the investigation, including whether the company filed a police report.

The filmmakers also alleged that Netflix declined to cooperate with the Los Angeles Police Department after they filed their own report regarding the missing drive.

Netflix responded that it limited the information it shared with the plaintiffs because of what it described as the producers’ conduct during the dispute. The company alleged that the plaintiffs initially demanded $165 million in connection with the situation rather than working toward a resolution.

Netflix characterized the demand as an attempt to pressure the company into making a substantial payment and said it had declined to provide details about its ongoing investigation to the law firm representing Afram.

The company continues to deny that it bears responsibility for the alleged financial losses. Netflix argues that the production team chose to deliver the film without password protection or encryption and that the lack of those safeguards increased the risks associated with storing and handling the digital master.

The plaintiffs, however, maintain that Netflix was fully aware that the drive was unencrypted and accepted responsibility for safeguarding the material after taking possession of it. They argue that the company failed to use basic security measures and did not promptly disclose the disappearance.

The lawsuit seeks $105 million in damages and alleges that the incident caused significant harm to the film’s commercial value, marketing strategy and distribution opportunities. The plaintiffs contend that the possibility of unauthorized access created uncertainty that disrupted efforts to promote and sell the movie during a crucial stage of its release plans.

No evidence has been presented publicly showing that a copy of “Fortitude” has appeared online. Netflix said its ongoing monitoring efforts have not identified any unauthorized distribution or sale of the film.

The case could ultimately center on whether Netflix had a legal duty to protect the digital master after accepting the unencrypted drive and whether the filmmakers assumed the risk by providing the movie without additional security measures.

As the legal dispute moves forward, both sides are expected to present competing accounts of the screening request, the handling of the digital file, the company’s response after the drive disappeared and the extent of any financial damage caused by the incident.

The lawsuit remains pending, and the allegations contained in the complaint have not been proven in court. Netflix continues to deny liability and says it has taken the situation seriously while working to protect the unreleased film from potential piracy.

Original article