The infamous sci-fi disaster that destroyed a studio and ended in a massive fraud investigation

No one ever wants the film they've worked on to be a flop when it heads to cinemas, but back in 2000, Battlefield Earth's box office performance was the least of its concerns.

The sci-fi film was based on the 1982 novel of the same name and starred the likes of John Travolta, Forest Whitaker and Kelly Preston. The plot followed humanity as they rebelled against the Psychlos, a tyrannical alien race that had been ruling Earth for 1,000 years.

The film was pioneered by John and other figures in the Scientology movement, which led to major production companies opting against picking the film up, paving the way for independent production company Franchise Pictures to acquire the rights.

The film was ridiculed upon its release, and following its opening weekend, John distanced himself from the project. Critics slated the movie's dialogue, performances and make-up, and it earned eight Golden Raspberry Awards, which highlight the worst of cinema.

However, while a box office flop might usually be the end of the story, when it came to Battlefield Earth, the story didn't end there, as Franchise Pictures faced legal action, with the company eventually going bankrupt.

Here's the story of what happened…

Why was Franchise Pictures sued over Battlefield Earth?

Battlefield Earth wasn't Franchise Pictures' only failure at the box office, with the likes of 3000 Miles to Graceland and Ballistic: Ecks vs. Sever also performing poorly, and the latter earned a rare 0% approval rating on Rotten Tomatoes.

However, following the failure of Battlefield Earth at the box office, it was reported that the FBI was investigating "the question of whether some independent motion picture companies have vastly inflated the budget of films in an effort to scam investors".

© Alamy Stock Photo

In December 2000, seven months after the film was released, Intertainment AG, a German company, brought a lawsuit against Franchise Pictures alleging that they had fraudulently inflated the film's budget, which Intertainment had helped to finance.

The case was heard in 2004, and during the trial, Intertainment alleged that the real budget for Battlefield Earth was only $44 million, instead of the $75 million that Franchise Pictures had claimed.

© Alamy Stock Photo

Although the jury rejected Intertainment's claims under the Racketeer Influenced and Corrupt Organizations Act, they still found in their favour, awarding them $121.7 million in total damages, with co-founder Elie Samaha held personally liable for $77 million.

Two months after the verdict, the company filed for bankruptcy.