Lawsuit Claims 'The Chosen' Studio Cheated Crowdfunding Shareholders During Going-Private Deal
A former shareholder is suing The Chosen's studio, alleging crowdfunding investors were unfairly compensated when the company went private.
A lawsuit against The Chosen Productions — the studio behind the popular Jesus drama — claims that small investors who helped fund the show through equity crowdfunding were not fairly compensated when the company transitioned to private ownership. The case was brought by a former shareholder who argues the buyout terms shortchanged ordinary investors who had purchased stakes in the company. The Chosen built its early financing through an equity crowdfunding model, an unusual approach that gave donors actual ownership shares in The Chosen Productions rather than simple donations or merchandise perks. That structure made the show's grassroots backers legal shareholders, and the lawsuit centers on what happened to their stakes when the company later went private. The Chosen has become one of the most-watched independently produced religious dramas in recent years, making the question of how its early investors were treated particularly pointed — the show's success was built in significant part on the financial participation of those same small-scale backers.
Why it matters
The case raises questions about the legal protections available to retail investors who use equity crowdfunding platforms, a relatively new and growing fundraising model. The outcome could affect how other companies using similar structures treat early crowd-investors during ownership transitions.
What's next
The lawsuit is ongoing, and no trial date or settlement has been reported by the sources.
Key facts
- The Chosen Productions used an equity crowdfunding model, giving donors actual ownership shares in the company
- A former shareholder filed the lawsuit alleging he was not fairly compensated during the company's move to private ownership
- The suit specifically centers on the terms offered to small investors when the studio went private
- The Chosen is a drama series about the life of Jesus and has become one of the most prominent independently produced religious shows
- The dispute highlights legal questions about shareholder rights under equity crowdfunding arrangements
Bias & framing notes
The A.V. Club framed the story around the studio 'squeezing out' small investors, language that implies intentional harm. The New York Times used 'shortchanging,' which is similarly loaded but slightly more neutral. Neither source provided the studio's formal response to the allegations, leaving the account one-sided by its nature as early litigation coverage.
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