Ari Pregen – Florida lawsuit calls Digital Domain ‘de facto Ponzi scheme’
The State of Florida has recently filed a lawsuit against Digital Domain and is calling it a “de facto Ponzi scheme”. They are seeking to recover $20 million provided in state incentives granted before the company failed.
The lawsuit, which was filed in St. Lucie County Circuit Court by William R. Scherer.
The original Digital Domain company was founded in 1993 in the state of California by “Titanic” director James Cameron. The company later ran up “crushing debt.”
Digital Domain was a Ponzi scheme,” the state lawsuit stated. “It was a serial borrower which constantly replaced old debt with new debt to keep the enterprise going. Of course, if Digital Domain California’s business model made any sense, it would have turned a profit and had no need to constantly seek out loans to pay its employees and stay in business.”