P.M. BRIEFING : Lloyd Bridges Settles Suit Over Commercials for Failed Firm
- Share via
CHICAGO — Lloyd Bridges agreed to a settlement today in a lawsuit charging that his appearance in TV commercials for a company that bilked investors out of millions of dollars made him liable for the losses.
The actor’s lawyer said the case established a trend in federal courts toward holding celebrities and advertising agencies accountable for even innocent misrepresentations in advertising.
The settlement was approved during a brief hearing before U.S. Bankruptcy Judge Robert E. Ginzberg. It included a confidentiality agreement barring disclosure of settlement terms.
The Bridges case was an offshoot of bankruptcy proceedings involving A. J. Obie & Associates, an investment firm for which he did a TV commercial, and its companion firm, Diamond Mortgage Corp.
The two firms--both owned by the same parties--filed bankruptcy in 1986, leaving investors with claims totaling more than $40 million.
It was later discovered that the companies were engaged in a confidence game known as a “Ponzi scheme,” in which investors’ money was used to pay off prior investors, giving the illusion of success, or else was pocketed by the companies’ owners.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
