Director Michael Ninn has publicly expressed frustration with Ninn Worx_SR management, specifically naming John L. Gray and Kathy Vercher, regarding the handling of his work and his status as a 49% shareholder. The dispute follows Ninn's departure from the company he founded, which was acquired by Spearmint Rhino last year.

Contentious Split and Allegations

Michael Ninn departed from Ninn Worx_SR after a prolonged dispute with Spearmint Rhino company management, according to Ninn. The split marks the end of Ninn's involvement with the company he founded, leading him to establish a new entity, IMNINN, for new multimedia projects. While both sides reportedly agree that Ninn is no longer part of his namesake studio, he remains a minority shareholder, and other grievances are subject to debate.

Spearmint Rhino acquired Ninn Worx last year, with Ninn retaining 49 percent of the company. The deal included Ninn's library of titles, which Ninn claims was earning approximately $100,000 per month. Ninn stated to XBIZ that he was unsure if he would be bought out but claims Spearmint Rhino breached its contract with him, entitling him to legal redress. Ninn plans to file a suit against Spearmint Rhino, alleging breach of contract that occurred "about 25 minutes after I signed it."

Ninn specifically cited waiting "more than eight months" for a balance sheet and the company's accounting practices as contributing to the alleged breach. Kathy Vercher, Spearmint Rhino Chief Operations Officer, told XBIZ that Ninn was "never an employee of the company, so he wasn’t fired — he’s a shareholder." Vercher added that Ninn "will remain a shareholder until one decides to buy out the other." Vercher also claims the company does not own the Michael Ninn name, and Ninn is free to use his name for other projects, a claim Ninn denies.

David Sullivan reported for AVN on June 16, 2008, that Ninn stated, "This is definitely headed to court. I am no longer working for the company." This point of disagreement is one of the few on which Ninn and the owners of Spearmint Rhino Corporation concur. John L. Gray, Ninn Worx_SR CEO, told AVN, "We welcome [a court case] at this point. We would rather have organization and order than arguments."

Signs of trouble at NWSR had been evident for some time, with contract performers Jana Jordan and Nikki Kane leaving in March, followed by Cassidey in April. Last week, Spearmint Rhino corporation issued a statement indicating Ninn was "on hiatus" from directing, which Ninn stated came as a surprise. Ninn reported being escorted out of the office two weeks prior under the guise of wiring work and found himself locked out of his office upon returning to work the following Monday. Both sides confirmed Ninn is no longer welcome at NWSR headquarters in Norco, Calif.

Concerns Over "The Four" and Copyright

Ninn has relinquished control of his adult fantasy film, The Four, which is currently in post-production and slated for release through NWSR this summer. He now intends to start his own company. In an August 2008 communication to the press and distributors, Michael Ninn, as a 49% shareholder of Ninn Worx_SR, Inc., and/or N Worx Media, Inc., stated his fiduciary and personal responsibility to inform distributors of potential copyright infringements related to The Four.

Ninn specified that John L. Gray, owner of Spearmint Rhino, along with Kathy Vercher, COO of Spearmint Rhino, have been repeatedly notified that there may be impending copyright infringements in the original edit performed by Michael Ninn. Ninn stated that this original edit was not intended for public viewing but should be considered a "work in progress only" and should not be used in part or full without his full review. As of the date of his communication, Ninn had not been given the opportunity to review The Four for any outstanding copyright infringements.

Public Statements and Ongoing Dispute

On June 30, 2008, a post on John L. Gray's blog, attributed to IMNINN, thanked websites for covering the "ever evolving Ninn Worx_SR lockout" and stated that Michael and Gray would "personally thank you for your support." This post also indicated that more news would follow later that day. Another post on June 24, 2008, titled "Ten Questions the Media Needs to Ask Mr. John L. Gray," was also attributed to IMNINN.

Ninn's recent public statements underscore the ongoing nature of the dispute, highlighting his continued involvement as a shareholder and his concerns regarding the company's operations and the integrity of his creative work.

Key Facts

  • Director Michael Ninn has split from Ninn Worx_SR following a dispute with Spearmint Rhino management.
  • Ninn remains a 49% shareholder in Ninn Worx_SR, which Spearmint Rhino acquired last year.
  • Ninn claims Spearmint Rhino breached his contract and plans to file a lawsuit.
  • Kathy Vercher, Spearmint Rhino COO, states Ninn was never an employee and remains a shareholder until a buyout occurs.
  • Ninn has expressed concerns about potential copyright infringements in the movie The Four, stating the original edit was a "work in progress only."
  • Ninn has established a new company, IMNINN, for new multimedia projects.