Warner Bros Discovery and Village Roadshow Settle Long-Running 'Matrix' Co-Financing Dispute for $57 Million

Warner Bros Discovery received a $57 million payment from Village Roadshow and has withdrawn its attempt to secure a previously awarded $125 million judgment against the company. Lawyers for Warner Bros Discovery filed the withdrawal “without prejudice” in LA Superior Court earlier this week, meaning the judgment could be resurrected.

The $57 million was scheduled to be in Warner Bros Discovery’s account within days of the court filing and has been received.

The payment stems from a long-running dispute that began when Village Roadshow launched a breach of contract lawsuit against Warner Bros on February 7, 2002. That lawsuit was moved to arbitration. Village Roadshow was later found liable for nearly $100 million in co-financing it never provided for The Matrix: Resurrections.

An appeals panel ruled that Village Roadshow North America could not be forced to purchase 50% of The Matrix: Resurrections. As a result, Warner Bros now fully owns 100% of the film and Village Roadshow now has a zero stake in The Matrix: Resurrections. The $57 million payment was reframed as damages following the appeals court decision.

Village Roadshow filed for Chapter 11 bankruptcy in 2025. The Matrix: Resurrections was released simultaneously in theaters and on streaming during the last gasps of the Covid-19 pandemic. The film was directed by Lana Wachowski.

In November 2025, Alcon Media Group was awarded derivative rights to the Matrix franchise and most other titles from Village Roadshow Entertainment Group’s film library. ” Deadline reported that Warner Bros had no comment on the resolution.

Lawyers for Village Roadshow did not respond to a request for comment. The legal battle, which lasted four years after the film’s release, has now been resolved through the $57 million payment and the withdrawal of the larger judgment attempt.