Terrence Howard Sues Former Agency CAA Over Alleged Underpayment Due to Racist Bias During His Run on Empire

Terrence Howard is suing his former agency CAA for breach of fiduciary duty, constructive fraud and misrepresentation.

According to a complaint filed in Los Angeles and obtained by PEOPLE, Howard claims the agency neglected to act in his best interest and negotiate a higher salary while playing music mogul Lucius Lyon on the Fox series. Empire.

The complaint alleges that CAA also represented producers Lee Daniels and Danny Strong and became a “packaging agent for the project” and were therefore “willing to give up their standard 10% agency fee.”

As a result, the complaint alleges, the agency informed Howard that “their compensation was built into the project budget and paid separately.”

Terrence Howard on ‘Empire’. FOX/Getty Images Terrence Howard says he plans to retire from acting: ‘I gave it the best I had’

While “he was not privy to the details involved in these types of packages,” the lawsuit claims Howard “continued to believe that his agents were serving his best interests at all times.” It also said he was not privy to the “conflicts of interest” involved in the deal.

The complaint states that the actor felt it was “commendable of them to avoid ‘double dipping’ the fees received as a packaging agent and those fees received from their actors.”

The practice of agencies receiving packaging fees has since been banned after the Writers Guild of America fought to reform the practice in 2020.

A spokesperson for CAA, as well as reps for Daniels and Strong, did not immediately respond to PEOPLE’s request for comment.

Terrence Howard. Larry Busacca/Getty Vivica A. Fox Doesn’t Think ‘Empire’ Costar Terrence Howard Will Really Quit Acting, Says

According to the lawsuit, it wasn’t until “years later” that “Howard discovered that CAA actually put his best interests first” and put his “own financial interests as well as the interests of the production companies that were also represented ahead of his own.”

When Empire debuted on Fox in January 2015, the musical drama became an instant hit. The series won critical acclaim and marked Fox’s “highest-rated debut in three years,” according to the lawsuit.

Despite the massive success, the complaint alleges that Howard was paid $125,000 per episode as agreed upon in the actor’s initial “pilot contract.” If the network were to pick up the series, the “pilot deal” set out “an episode fee schedule for several seasons.”

The complaint states that Howard was able to “renegotiate his per-episode fees to double” around June 27, 2016, although his total salary was “still below the standard of a lead actor on a hugely popular and successful television show.”

Terrence Howard and Taraji P. Henson in ‘Empire’. FOX Image Collection via Getty Terrence Howard Was Almost Fired From ‘Empire,’ According to Management Company’s $250,000 Lawsuit

As Empire continued to grow in popularity and generate hundreds of millions of dollars in revenue, the suit alleges that Howard “once again” asked his agents at CAA to request an increase in his total salary “to reflect comparable compensation packages” of other leading actors on successful series.

In response to his request, the complaint alleges that his CAA agents provided him with a list of the compensation numbers other lead actors received for their roles at the time. Kevin Spacey’s compensation is claimed to be for Tower of cards and John Hamm is in favor Crazy people they topped the list for “season 4 total episodic compensation of $450k and $350k respectively”.

“Because Howard was represented by CAA,” the complaint says he had “no context” behind Spacey and Hamm’s cameo fees. Empire’viewership far surpassed both Tower of cards and Crazy people at the time and “the other actors listed from the alphabetical networks did not have ratings anywhere near Howard’s.”

“He reasonably believed that the comparisons given to him by his agents were an accurate reflection of what he should be paid,” the lawsuit added.

Terrence Howard. Jason Kempin/Getty Images Terrence Howard says he misses Jussie Smollett in ‘Empire’: ‘The heart of our show is gone’

Around 2021, Howard “discovered” that “statements by his agents regarding the comparisons discussed in 2018 were in fact misleading,” according to the complaint. It alleges that the agency neglected to properly reflect the compensation Howard would be “entitled to” by “excluding” other popular shows such as Game of Thrones, Gilmore Girls, Big Bang Theory and others.

The lawsuit continues: “Had Howard received that information, which would have more accurately reflected what his compensation should have been, as Howard’s agent, CAA would have been obligated to do everything in their power to renegotiate Howard’s compensation to accurately reflect what should have been paid for such popular television.”

Howard is seeking compensation for “exemplary and/or punitive damages,” legal fees and “such other and further relief as the Court deems just and appropriate.”

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At a press conference on Friday, Howard claimed that he “trusted CAA to look out for me, and they looked out for themselves.” He also stated that he “never received compensation as a producer or any of those things that are immediately given or demanded by agents of white actors.”

Howard’s attorney, Carlos Moore, shared the same sentiments, stating that “discovery will show that this was racism.”

“There are two kinds of lawyers in LA, two kinds of lawyers in the world for the most part,” Howard said, adding that the lawsuit could be the “death blow” to his career. “Those who work for Disney, or those who want to work for Disney. There was a conflict of interest.”

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Source: HIS Education