Netflix Sued for Losing Unencrypted Hard Drive of 'Fortitude', Claims of At Least $105 Million
The production company has sued Netflix, accusing it of losing an unencrypted hard drive of an unreleased film at its Los Angeles office, seeking at least $105 million in damages.
The film is a WWII-themed thriller titled 'Fortitude', produced by Swiss producer Simon Afram with a budget of $45 million, taking over seven years to complete, starring Nicolas Cage. On June 15, 2026, a representative from the production company personally delivered the unencrypted Digital Cinema Package (DCP) to Netflix's Hollywood office for an internal screening.
After the screening, the production company requested the deletion of files and the return of the hard drive. About a week later, Netflix executive Sean Berney informed via email on June 25 that several hard drives on the office desk had been stolen, including the copy of the film. Netflix stated that the other lost hard drives were empty, and only this film was accessible due to being unencrypted, denying responsibility and claiming the delivery did not follow industry-standard security measures.
The lawsuit was filed in a California federal court, with plaintiffs Op-Fortitude Ltd. and Simon Afram. They claim the loss has harmed the film's commercial prospects, pausing international distribution and award strategies, and are seeking damages calculated at 2.5 times the production budget. Netflix denies responsibility for the risks associated with unencrypted delivery.
The film had previously faced distribution difficulties. Afram invested his own funds, and Cage and other actors participated in filming for about two weeks.
Market mechanisms have led to this lawsuit over content security and custody responsibilities. The buyer, a potential distributor, Netflix, had expressed interest, while the seller, the self-funded production company, seeks compensation for value loss. The flow of funds is directed towards legal disputes rather than film distribution, with the beneficiary depending on the court's determination of custody and encryption responsibilities, while the burden falls on the production company for unencrypted delivery and the streaming platform's office security management.
Source: Public Information
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Simon Afram invested $45 million of his own funds to produce 'Fortitude', previously advancing the project in Hollywood with a high-budget self-funding model. Netflix received promotional materials at the end of 2025 and requested a screening copy in June 2026, ultimately leading to the lawsuit due to the theft of the hard drive.
The capital path reflects the production company's legal recourse as a means of value recovery. The motivation is that the loss of the unencrypted DCP could trigger piracy risks, making it difficult for subsequent buyers to assess exclusivity; the claim aims to cover production costs and expected revenues, rather than relying on traditional distribution recovery.
This is similar to other cases where content companies have pursued litigation for compensation after security negligence led to the leak or loss of unreleased material. Currently, there is a dispute phase between streaming platforms and independent producers regarding the definition of content delivery and custody responsibilities.
Essentially, this involves regulation and the transfer of responsibility. The mechanism is that unencrypted delivery shifts the physical custody risk from the producer to the recipient, and once lost, it may affect commercial value; the court will determine whether industry-standard encryption requirements constitute an implied contractual obligation, thereby deciding who bears the risk.
ABAB News · Cognitive Law
Unencrypted delivery shifts risk to the recipient
Physical loss can destroy the commercial value of digital content
Recovery paths for self-funded films include litigation claims