Livent
Encyclopedia
The Live Entertainment Corporation of Canada, Inc., also known as Livent, was a theatre production company in Toronto, Ontario, begun as a division of the motion picture exhibitor Cineplex Odeon
. In 1989, after an internal struggle within the company, Cineplex executives Garth Drabinsky
and Myron Gottlieb negotiated to buy the division, which then included the Pantages Theatre, Toronto, and rights to Andrew Lloyd Webber
's popular musical The Phantom of the Opera
.
Livent joined the mix when the only competition in the major Toronto theatrical world was Mirvish Productions, which was running Les Misérables
while Livent's Phantom was running.
. The company grew quickly, becoming best known for mega-productions of such musicals as Joseph and the Amazing Technicolor Dreamcoat
, Kiss of the Spider Woman
, Show Boat
(the highly successful 1993 revival which went to Broadway
in 1994), Fosse
, and Ragtime
.
The company also built or refurbished several theatres (including the Oriental Theatre, Chicago), and entered into management deals with others (e.g.: Ford Centres, in Toronto, Vancouver
, and New York
).
take charge. Things deteriorated quickly between the company and co-founders Drabinsky and Gottlieb. The two were dismissed and escorted, under security, out of Livent's Toronto offices on August 13, 1998. Livent subsequently filed a $225 million lawsuit against them.
, claiming a debt of $334 million. The Royal Canadian Mounted Police
launched a criminal investigation, and securities regulators in both Canada and the US began investigating the company's books.
In January, 1999, Livent's former chairman, Drabinsky, and president, Gottlieb were indicted in a New York court on charges they personally misappropriated $4.6 million in company funds and "cooked the books" to hide enormous losses from investors. Drabinsky and Gottlieb failed to appear for trial, and, more than twelve years later, are still under fugitive arrest warrants in the United States.
(formerly known as Clear Channel Entertainment), acquired the bankrupt company, paying $98 million (US) for most of its assets, including the theatres and rights to all productions.
Charged were: Garth H. Drabinsky, age 52, of Spadina Road in Toronto - charged with nineteen counts of Fraud over $5,000.
Myron I. Gottlieb, age 59, of MacPherson Avenue in Toronto - charged with nineteen counts of fraud over $5,000.
Gordon Eckstein, age 50, of Scarborough
- charged with eighteen counts of Fraud over $5,000.
Robert Topol, age 47, of Newport Square in Thornhill
- charged with thirteen counts of Fraud over $5,000.
The charges against Robert Topol were dismissed June 22, 2007.
and forgery
in Ontario Superior Court for misstating the company's financial statements between 1993 and 1998.
Cineplex Odeon
Cineplex Odeon Corporation was one of North America's largest movie theatre operators, with theatres in its home country of Canada and the United States...
. In 1989, after an internal struggle within the company, Cineplex executives Garth Drabinsky
Garth Drabinsky
Garth Howard Drabinsky, OC is a former Canadian film and theatrical producer and entrepreneur. In 2009, he was convicted and sentenced to prison for fraud and forgery. His sentence is stayed, pending appeal.-Biography:...
and Myron Gottlieb negotiated to buy the division, which then included the Pantages Theatre, Toronto, and rights to Andrew Lloyd Webber
Andrew Lloyd Webber
Andrew Lloyd Webber, Baron Lloyd-Webber is an English composer of musical theatre.Lloyd Webber has achieved great popular success in musical theatre. Several of his musicals have run for more than a decade both in the West End and on Broadway. He has composed 13 musicals, a song cycle, a set of...
's popular musical The Phantom of the Opera
The Phantom of the Opera (1986 musical)
The Phantom of the Opera is a musical by Andrew Lloyd Webber, based on the French novel Le Fantôme de l'Opéra by Gaston Leroux.The music was composed by Lloyd Webber, and most lyrics were written by Charles Hart, with additional lyrics by Richard Stilgoe. Alan Jay Lerner was an early collaborator,...
.
Livent joined the mix when the only competition in the major Toronto theatrical world was Mirvish Productions, which was running Les Misérables
Les Misérables (musical)
Les Misérables , colloquially known as Les Mis or Les Miz , is a musical by Claude-Michel Schönberg, based on the novel of the same name by Victor Hugo....
while Livent's Phantom was running.
Early success
In 1993 Live Entertainment Inc. went public on the Toronto Stock ExchangeToronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
. The company grew quickly, becoming best known for mega-productions of such musicals as Joseph and the Amazing Technicolor Dreamcoat
Joseph and the Amazing Technicolor Dreamcoat
Joseph and the Amazing Technicolor Dreamcoat is an Andrew Lloyd Webber musical with lyrics by Tim Rice. The story is based on the "coat of many colors" story of Joseph from the Hebrew Bible's Book of Genesis. This was the first Lloyd Webber and Rice musical to be performed publicly...
, Kiss of the Spider Woman
Kiss of the Spider Woman (musical)
Kiss of the Spider Woman is a musical with music by John Kander and Fred Ebb, with the book by Terrence McNally. It is based on the Manuel Puig novel El Beso de la Mujer Araña...
, Show Boat
Show Boat
Show Boat is a musical in two acts with music by Jerome Kern and book and lyrics by Oscar Hammerstein II. It was originally produced in New York in 1927 and in London in 1928, and was based on the 1926 novel of the same name by Edna Ferber. The plot chronicles the lives of those living and working...
(the highly successful 1993 revival which went to Broadway
Broadway theatre
Broadway theatre, commonly called simply Broadway, refers to theatrical performances presented in one of the 40 professional theatres with 500 or more seats located in the Theatre District centered along Broadway, and in Lincoln Center, in Manhattan in New York City...
in 1994), Fosse
Fosse
Fosse is a three-act musical revue showcasing the choreography of Bob Fosse. After 21 previews, the original Broadway production, conceived and directed by Richard Maltby, Jr...
, and Ragtime
Ragtime (musical)
Ragtime is a musical with a book by Terrence McNally, lyrics by Lynn Ahrens, and music by Stephen Flaherty.Based on the 1975 novel by E. L. Doctorow, Ragtime tells the story of three groups in America, represented by Coalhouse Walker Jr., a Harlem musician; Mother, the matriarch of a WASP family in...
.
The company also built or refurbished several theatres (including the Oriental Theatre, Chicago), and entered into management deals with others (e.g.: Ford Centres, in Toronto, Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
).
Decline, quarrels
By 1997, the company was losing money (a loss of $44.1 million that year alone), and in June, 1998, shareholders approved a deal which saw American actors' agent and ex-Disney executive Michael OvitzMichael Ovitz
Michael S. Ovitz is an American talent agent who co-founded Creative Artists Agency in 1975 and served as its chairman until 1995. Ovitz later served as President of the Walt Disney Company from October 1995 to January 1997....
take charge. Things deteriorated quickly between the company and co-founders Drabinsky and Gottlieb. The two were dismissed and escorted, under security, out of Livent's Toronto offices on August 13, 1998. Livent subsequently filed a $225 million lawsuit against them.
U.S. Bankruptcy, indictments
In November, 1998, Livent sought bankruptcy protection in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, claiming a debt of $334 million. The Royal Canadian Mounted Police
Royal Canadian Mounted Police
The Royal Canadian Mounted Police , literally ‘Royal Gendarmerie of Canada’; colloquially known as The Mounties, and internally as ‘The Force’) is the national police force of Canada, and one of the most recognized of its kind in the world. It is unique in the world as a national, federal,...
launched a criminal investigation, and securities regulators in both Canada and the US began investigating the company's books.
In January, 1999, Livent's former chairman, Drabinsky, and president, Gottlieb were indicted in a New York court on charges they personally misappropriated $4.6 million in company funds and "cooked the books" to hide enormous losses from investors. Drabinsky and Gottlieb failed to appear for trial, and, more than twelve years later, are still under fugitive arrest warrants in the United States.
Change of ownership
In August 1999, SFX Entertainment of New York, now a division of Live NationLive Nation
Live Nation is a live-events company based in Beverly Hills, California, focused on concert promotions. Live Nation formed in 2005 as a spin-off from Clear Channel Communications, which then merged with Ticketmaster in 2010 to become Live Nation Entertainment....
(formerly known as Clear Channel Entertainment), acquired the bankrupt company, paying $98 million (US) for most of its assets, including the theatres and rights to all productions.
Canadian investigation
In October 2002, Canadian police charged four former Livent senior executives with fraud affecting the public market. These charges were laid under Section 380 (1)(a) of the Criminal Code of Canada, and pertain to alleged accounting irregularities within Livent Inc. between December 14, 1989 and June 23, 1998.Charged were: Garth H. Drabinsky, age 52, of Spadina Road in Toronto - charged with nineteen counts of Fraud over $5,000.
Myron I. Gottlieb, age 59, of MacPherson Avenue in Toronto - charged with nineteen counts of fraud over $5,000.
Gordon Eckstein, age 50, of Scarborough
Scarborough, Ontario
Scarborough is a dissolved municipality within the city of Toronto, Ontario, Canada. Geographically, it comprises the eastern part of Toronto. It is bordered on the south by Lake Ontario, on the west by Victoria Park Avenue, on the north by Steeles Avenue East, and on the east by the Rouge River...
- charged with eighteen counts of Fraud over $5,000.
Robert Topol, age 47, of Newport Square in Thornhill
Thornhill, Ontario
Thornhill is a community in the Greater Toronto Area of Southern Ontario, Canada, located on the northern border of the city of Toronto. Once a municipal village, Thornhill is now a community and postal designation geographically split into two municipalities along Yonge Street, the city of...
- charged with thirteen counts of Fraud over $5,000.
The charges against Robert Topol were dismissed June 22, 2007.
Drabinsky, Gottlieb convicted, sentenced
On March 25, 2009, Drabinsky and Livent co-founder Myron Gottlieb were found guilty of fraudFraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
and forgery
Forgery
Forgery is the process of making, adapting, or imitating objects, statistics, or documents with the intent to deceive. Copies, studio replicas, and reproductions are not considered forgeries, though they may later become forgeries through knowing and willful misrepresentations. Forging money or...
in Ontario Superior Court for misstating the company's financial statements between 1993 and 1998.