Cabaret Producers Move to Dismiss Investor Lawsuit

The producers of Cabaret at the Kit Kat Club on Broadway have filed motions to dismiss an investor lawsuit that alleges fraud, breaches of fiduciary duty, and mismanagement of funds. The filings came after attorney and investor James Lorenzo Walker, Jr. brought claims in New York Supreme Court seeking the return of his $50,000 investment, an accounting of the show’s finances, and damages. The revival, which opened in April 2024 at a reported cost of more than $24 million, closed earlier than expected on September 21, 2025.

The news was first reported earlier today by Broadway Journal's Philip Boroff. “There are dozens of investors who have the same questions I have,” Walker told Boroff. Read the full story here.

In their legal response, the defendants argue that Walker’s complaint improperly combines individual and derivative claims, fails to meet the statutory requirement to make a pre-suit demand on the general partners, and relies on allegations that are "bare legal conclusions" rather than particularized facts. The motions contend that Walker even threatened to wage a negative press campaign unless producers repaid him $90,000 within five days.

Among the documents filed is a July 30, 2025 email from John Rogers, general counsel for ATG Entertainment, addressed to Walker. "I offered to sit down with you and walk you through the show’s financial statements to provide you with a more detailed understanding of the company’s cash flows," Rogers wrote. "Chris Morey at 101 Productions offered you the same opportunity weeks ago. Despite your demands for an 'accounting,' you declined both offers."

The email goes on to accuse Walker of trying to leverage publicity against the production. "You said that the only thing that you were interested in knowing was how much the producers have made on the show – inferring that you can force the producers to refund your investment by simply establishing that the producers have been compensated while the investors are not receiving a return of capital," Rogers stated. "Of course, you declared that you would be influencing the outcome by inciting a barrage of press coverage."

Rogers added that producers had complied with reporting obligations and had even begun waiving fees and royalties in October 2024 in order to reduce weekly expenses. "Providing some level of compensation to principals while engaged in efforts intended to enrich passive investors is an accepted business practice that goes well beyond Broadway," he wrote.

Walker maintains that his lawsuit is about transparency rather than personal conflict. "This is a case about transparency," he said in an interview. "For several months I tried to get an idea of what was going on financially and where revenues were going. I repeatedly asked for full transparency, including access to records, and got no cooperation."

The producers said in a statement that while they are proud of the artistic success of Cabaret and disappointed it had to close early, "the production has not been in a position fiscally to make any distribution to investors. We’ve offered to engage in a constructive dialogue with Mr. Walker regarding his financial expectations and to give him access to our accounts, but unfortunately, he has instead decided to file a lawsuit that lacks any merit." A representative added that the lead producers have waived their fees and royalties for over a year.

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