Jim Henson Company Former Executive Seeks $7.5 Million in Breach-of-Contract Lawsuit

A veteran film producer who helped shepherd some of The Jim Henson Company’s most successful modern movies and TV series has sued the company, alleging it failed to honor a settlement agreement guaranteeing him compensation and screen credits on several high-profile projects.

Jason Lust, a former senior executive at the home of the Muppets, filed the lawsuit last week in Los Angeles County Superior Court, asserting breach of contract. The complaint, obtained by TheWrap, seeks at least $7.5 million in damages, plus interest, attorney’s fees and punitive damages.

Lust alleges the company failed to compensate him or provide agreed-upon credits connected to the sequel “Alexander and the Terrible, Horrible, No Good, Very Bad Day,” Guillermo del Toro’s Oscar-winning “Pinocchio,” and the Apple TV+ series “Fraggle Rock: Back to the Rock.”

According to the complaint, Lust ran The Jim Henson Company’s feature film department for nearly eight years and played a central role in developing “Alexander,” which became the company’s first $100 million theatrical franchise, as well as “Pinocchio,” which won the Academy Award for best animated feature.

After leaving the company, Lust entered into a confidential settlement agreement in 2015 resolving an employment dispute. That agreement, the lawsuit alleges, guaranteed Lust producing bonuses and compensation, accounting statements and executive producer credits if the company continued producing sequels or related projects.

The lawsuit claims that when “Alexander and the Terrible, Horrible, No Good, Very Bad Road Trip” was released in March 2025, The Jim Henson Company returned as a producer but did not pay Lust his contractual share or provide an executive producer credit.

Lust further alleges that while he received an executive producer credit on “Pinocchio,” the credit was “non-industry standard” and buried deep in the end titles, diminishing its value and depriving him of recognition tied to the film’s awards success.

The complaint also accuses the company of sidestepping its obligations on “Fraggle Rock” by shifting the project from a feature film to a television series, resulting in Lust receiving no compensation or producer credit when “Fraggle Rock: Back to the Rock” premiered on Apple TV+ in 2022.

Lust claims the company’s actions were deliberate and intended to deny him financial participation and professional recognition promised under the settlement agreement.

The Jim Henson Company did not immediately respond to a request for comment Tuesday.

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