Peter Jackson , director of The Lord of the Rings , and his studio Wingnut Films , brought a lawsuit against New Line Cinema after an audit. Jackson stated this is regarding "certain accounting practices". In response, New Line stated that their rights to a film of The Hobbit were time-limited, and since Jackson would not work with them again until the suit was settled, he would not be asked to direct The Hobbit , as had been anticipated.  Fifteen actors are suing New Line Cinema, claiming that they have never received their 5% of revenue from merchandise sold in relation to the movie, which contains their likenesses.  Similarly, the Tolkien estate sued New Line, claiming that their contract entitled them to % of the gross receipts of the $6 billion hit.  According to New Line's accounts, the trilogy made "horrendous losses" and no profit at all.