The $550 Million Press Release Lie

The folks at LA’s Insomnia Media Group apparently believe that if you’re going to stretch the truth in a press release, you might as well go for the whole bank wire.

Per a Superior Court complain filed by Borak Capital Holding of Egypt, the company is accused of making up a gigantic two-comma investment figure and showcasing the amount in a November 2007 press release. Part of the problem is that the news of Borak’s bogus $550 million commitment was dutifully picked up by the media:

The press release was printed as truth by trade papers, including Reuters and Variety, according to the complaint… “None of the statements in defendants’ press release, and subsequent news stories, were true,” Borak says in its complaint.

Plaintiff has also not worked with defendants for 12 years outside the entertainment sector on real estate and energy deals. “Indeed, plaintiff did not exist 12 years ago,” the complaint states.

Earlier this year, Insomnia was sued by two men who claimed the company defrauded them of $1 million by falsely bandying about Robert De Niro’s name. Per the company’s logo above, Insomnia definitely seems to have an affinity for howlers.

@hollywoodspin Richard Horgan is co-editor of Fishbowl.