Kevin Spacey has struck a new deal with MRC, which will forgive all but $1 million of a $31 million judgment the “House of Cards” producer won against the disgraced actor in 2021 in exchange for his testimony against the production’s insurer, Puck reported Thursday.
MRC is pursuing a $150 million claim against Lloyds of London and Fireman’s Fund, which rejected producers’ attempts to recover money lost in the scramble to replace Spacey on “House of Cards” after a series of sexual abuse and harassment allegations surfaced.
Spacey will give depositions, release medical records and make himself available to testify at trial, scheduled for June 3. In exchange, MRC’s $31 million judgment against him will be vacated, and he will pay $1 million in installments that are based on his income, Puck reported, citing unnamed sources.
MRC won its $31 million judgment against Spacey in late 2021, a figure that has been accruing interest already now at $5 million, Puck reported – meaning Spacey’s cooperation will come with at least a $35 million savings. Puck says the deal was struck just before the new year, and that Netflix stands to recover half of whatever MRC wins at trial.
MRC argues that Spacey suffered from sex addiction, which it says qualifies as sickness for insurance purposes. A court ruled late last year against MRC, saying the malady clearly didn’t arise during the “House of Cards” production; MRC has amended its complaint, focusing on the insurers’ alleged failure to investigate the claim fully.
The new complaint says MRC decided to drop Spacey not because of blowback or fear of public scorn, but because Spacey was being treated at a sex-addiction rehab center and was unavailable for its tight Season 6 production schedule, Puck reported.
Representatives for Spacey did not immediately return messages sent Thursday; MRC declined to comment on an ongoing legal matter. Lloyds of London and Fireman’s Fund did not immediately return messages left Thursday.