Angel Studios is currently or recently involved in an Angel Studios lawsuit or arbitration on multiple fronts: a now-closed contractual battle with The Chosen, Inc. that ended in a unanimous ruling against the company; a breach of contract suit from the producers of the animated film David that Angel Studios settled by buying the franchise for $78 million; a terminated distribution deal with filmmaker Ashley Bratcher over the project Pharma; and continuing exposure from a $62 million copyright judgment tied to its former life as VidAngel. A second, separate arbitration filed by Angel Studios against The Chosen in June 2025 remains open.
The Chosen Arbitration
The dispute with The Chosen, the crowdfunded drama about the life of Jesus created by Dallas Jenkins, is the most significant Angel Studios lawsuit to date. Jenkins’ company, The Chosen, Inc., alleged that Angel Studios breached a revised October 2022 distribution agreement almost immediately after signing it. That revised agreement had already narrowed Angel Studios’ role, leaving it with perpetual distribution rights and exclusive NFT rights while giving The Chosen, Inc. control over its own theatrical releases and sub-licensing.1Angel Studios. Angel Studios Distribution Agreement With The Chosen
The Chosen, Inc. tried to terminate the deal in April 2023 and again in October 2023, and the parties went into private arbitration. Jenkins later said the two sides chose arbitration to avoid “a public spectacle.”2The Hollywood Reporter. The Chosen Angel Studios Legal Battle
On May 28, 2024, the arbitrator ruled for The Chosen, Inc., finding that Angel Studios had breached the contract “in multiple and material ways” and that The Chosen was entitled to terminate. The arbitrator also awarded The Chosen’s producers more than $5 million in fees and recoverable costs.3The Hollywood Reporter. Rights Biblical Animated Film David Angel Studios Angel Studios disputed the ruling and invoked the appeal provision built into the original agreement.
In June 2025, a panel of three independent arbitrators unanimously upheld the original decision. Jenkins announced during a livestream that the case was “officially closed” and the contract “officially terminated forever.”4Deseret News. The Chosen Angel Studios
The financial stakes were substantial. In a separate 2022 lawsuit against its former Chief Distribution Officer Brad Pelo, who had left to become president of The Chosen, Angel Studios said it expected to collect up to $2.6 billion in revenue from the show’s planned seven seasons.5Newsweek. Sound of Freedom Angel Studios Chosen The parties had also disagreed publicly about the split of “Pay It Forward” donations, with Jenkins framing his company as bearing the financing burden while Angel Studios described the arrangement as a 50/50 split after a 15% marketing deduction and pointed to more than $115 million in royalties already paid to The Chosen, Inc.6Variety. The Chosen Angel Studios Ruling
The legal wrangling is not entirely over. Shortly after the appeal was resolved, Angel Studios filed a new, separate arbitration against The Chosen in June 2025. Jenkins disclosed the filing during a June 18 livestream, called it “unfortunate,” and declined to share specifics while the matter is pending.7ChurchLeaders. Angel Studios New Arbitration The Chosen Dallas Jenkins
The Slingshot Lawsuit Over David
In March 2025, Slingshot Productions, the producer of the animated film David and companion series Young David, sued Angel Studios for breach of contract in Utah’s Fourth Judicial District Court after mediation failed.8The Wrap. Angel Studios Sued David Movie Producers Breach of Contract
Slingshot accused Angel Studios of attempting a “hostile takeover” of the $42 million franchise, which was funded by more than 12,000 individual investors. The complaint alleged that Angel Studios:
- Cut Slingshot out of decisions on international distribution, merchandising, and marketing, in violation of a 2021 agreement requiring “complete mutuality” in decision-making.9Yahoo Entertainment. Filmmakers Accuse Angel Studios Attempted Hostile Takeover
- Removed the producer’s logo from advertising and social media, creating the impression that David was an in-house Angel production.
- Placed Young David episodes behind a paywall to promote its subscription service, despite an agreement to keep the content free under the Pay It Forward model.
- Signed distribution deals in Brazil, West Africa, and the U.K. without Slingshot’s consent, and released what Slingshot called “shoddily dubbed” foreign-language versions.
- Used David intellectual property in investor presentations for its public listing and refused to negotiate international deals for the film unless partners also carried other Angel Studios titles.3The Hollywood Reporter. Rights Biblical Animated Film David Angel Studios
Slingshot had already terminated its distribution agreement with Angel Studios in November 2024. The lawsuit asked the court to confirm that termination was valid and sought damages and restitution for intellectual property infringement. Angel Studios said it had not breached the agreement and that the contract only required mutual approval on “high-level decisions.”
The case was resolved by acquisition rather than judgment. On October 8, 2025, Angel Studios and partner 2521 Entertainment bought 100% of the David franchise from Slingshot USA for $78 million, with Angel Studios contributing about $31 million in cash. The deal settled the litigation and gave Angel Studios full control of the animated feature, set for a December 19, 2025 theatrical release, along with the Young David series.10Deadline. Angel Studios 2521 Entertainment Acquire David Franchise
The Pharma Termination
A smaller but similar dispute involved filmmaker Ashley Bratcher and her project Pharma. In June 2023, Bratcher and her production company, Frankie’s Story LLC, dissolved their distribution option agreement with Angel Studios, citing breach of contract and fraudulent inducement. Bratcher said Angel Studios pressured her to hire the Harmon Brothers advertising agency, which shared leadership with Angel Studios, and tried to restructure investment terms in a way that would have given the Angel Acceleration Fund a majority ownership stake in the project. A later SEC filing by Frankie’s Story confirmed the termination on those grounds. No litigation was filed; the split was handled through formal correspondence.11Rolling Stone. Sound of Freedom Angel Studios Audience Business Practices
The VidAngel Copyright Legacy
Angel Studios also carries legal weight from its predecessor, VidAngel, a streaming filter service that Disney, Fox, Warner Bros., and other studios sued in 2016 in the U.S. District Court for the Central District of California for copyright infringement and DMCA violations. In June 2019, a jury ordered VidAngel to pay $62.4 million in damages after a judge found the company had willfully streamed 819 movies without authorization.12Variety. VidAngel Jury Verdict Damages
In September 2020, a federal bankruptcy court approved a settlement reducing the payment to nearly $10 million spread over 14 years, barring the company from streaming studio content without permission, and requiring it to drop all pending appeals.13Fox 13 Now. Utah-Based VidAngel Settles $62 Million Copyright Lawsuit With Hollywood Studios The company sold its filtering business in 2021 and rebranded as Angel Studios.14TV Technology. VidAngel Rebrands as Angel Studios for Crowdfunding Content
That settlement is still a live risk. Angel Studios’ 2025 annual report identifies the Disney settlement as an ongoing exposure, warning that if any studio prevails in an enforcement action for unauthorized use of copyrighted works, the consequences would “significantly impair our ability to continue as a going concern.”15SEC. Angel Studios Inc 2025 Annual Report The company also remains subject to liens on its intellectual property under its bankruptcy reorganization plan.
What Angel Studios’ Filings Show About Ongoing Exposure
Legal costs remain material. For the nine months ending September 30, 2025, Angel Studios reported $8.4 million in legal expenses, down from roughly $10 million over the same period in 2024.16SEC. Angel Studios Inc Quarterly Report
The company also disclosed a guarantee obligation on a $6 million note, later amended to $8.5 million, for an unnamed filmmaker that went into default in February 2025, requiring Angel Studios to make payments on the debt.17SEC. Angel Studios Inc Offering Circular Between that obligation, the VidAngel settlement covenants, and the second arbitration with The Chosen that Angel Studios itself opened in June 2025, the company’s legal file remains active even after the biggest disputes have closed.