DMG seems very reckless in their response and reckless is par for the course with them.

Listed as Yinji Entertainment Media Company, the company saw its shares close Tuesday at RMB3.53 apiece, giving a market capitalization of 930 million (RMB6.26 billion.).

Fenton accuses the founders Dan Mintz, Wu Bing, and Peter Xiao of reckless risk-taking, and of engaging in complex financial maneuvering to get money out of China.

The suit says that the founders also took on millions in debt to pay for experimental regenerative medical treatments.

He states that he personally defended the company from an SEC investigation into potential violations of the Foreign Corrupt Practices Act in 2013.

The SEC was investigating whether DMG had bribed Chinese officials, including Han Sanping, then the head of the China Film Group.

Fenton states that he took the lead in defending the company and explaining the Chinese film business to the SEC, while the founders remained out of sight.

Under the terms, DMG would give the artist 45 million over three years.

In exchange, the artist would give DMG 30 million over the same period.

The cost to DMG would be hidden, while the money received would be booked as revenue.

According to the suit, the goal of the arrangement was to take advantage of the companys high stock multiple.

Fentons suit says he actually tried to pitch the deal to one A-list actor and a producer, without success.

An attorney for one of them told Fenton it did not pass the smell test.

In July 2015, for example, the founders flew by private jet to Milan for Wus birthday.

At the event, Fenton says Wu told him, The IPO made us rich, and you will be rich from it, too.

None of the claims asserted by Chris Fenton in the unfiled complaint have any merits.

DMG is looking forward to defending this case to expose the true nature of Chris Fenton to the industry.

Specifically, Chris Fenton had been a contracted employee by DMG Entertainment for four (4) years and not 17 years as he asserts.

Chris Fentons contract was terminated due to his poor performance and asset mismanagement of investments which costs DMG millions of dollars.

During his short tenure Chris Fenton was not tasked to work for Yinji Entertainment Media Company, a Chinese publicly traded company.

During his tenure he was paid an annual salary of 200,000 plus 800,000 per year for the purchase of his talent company.

His contract did not promise him any bonus or other compensation other than his 200,000 annual salary.

Chris Fenton also misled the company in the purchase of his talent company which dramatically underperformed his stated revenue projections.

When they see the complaint, theyll see the facts that rebut their statements today.

Dmg Studios