According to The Hollywood Reporter, Napoleon Pictures, the production company behind “Napoleon Dynamite,” is suing Fox Searchlight for $10 million for allegedly under-reporting royalties as well as taking incorrect revenue deductions.

According to the article, the production company filed the lawsuit Aug. 30 in Los Angeles Superior Court; the claim is that Fox Searchlight initially promised huge royalties for the film’s home video sales, but failed to do so. According to the claim, Napoleon Pictures had its share of offers from distributors, but the company decided to go with Fox Searchlight because of their $4.75 million up-front fee and the aforementioned high royalties. However, Fox Searchlight, who agreed to pay 31.66 percent of the net profits, only paid net royalties at a 9.66 percent rate.

Also, Napoleon Pictures alleges a breach of contract and negligent misrepresentation about other income from “Dynamite.”

You can read the full complaint, filed by Marty Singer and Allison Hart of Lavely and Singer, as well as more information on the story here at The Hollywood Reporter.

It’s a shame that a great film like “Napoleon Dynamite” got cheated out of its full revenue. What do you think about this news? How do you think this whole lawsuit will end? Give us your opinions in the comments section below.