Legal File

Fraud Alleged on ‘Elm Street’: A company involved in a partnership that financed the “Nightmare on Elm Street” films has filed a $15-million lawsuit in Los Angeles Superior Court against its partners, alleging breach of contract, fraud and breach of fiduciary responsibility. In the suit, Smart Egg Pictures S.A. accuses Heron Communications Inc. and New Line Cinema Corp. and several of its affiliated companies of breaking an agreement, fraud and breach of fiduciary responsibility for allegedly trying to “squeeze out” the company once they realized the success of the movies and their lead character, Freddy Krueger.