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Iowa Settles Lawsuit in Movie Incentive Scandal

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DES MOINES, Iowa (AP) — Iowa has settled a lawsuit stemming from the suspension of a tax incentive program for movies to be made in the state.

The Des Moines Register says the payment of a little more than $2 million will settle claims involving three movies: “When September Ends,” ‘’Lucky,” and “Underground.” Anthony Gudas, of Providence, Rhode Island, had said his company invested in four film projects based on state contracts, but the tax credits were never paid. In October 2013 the state agreed to pay $225,000 to settle part of the lawsuit for one of the four movies, “2001 Maniacs: Field of Screams.”

Iowa suspended the movie incentive program after an audit uncovered $26 million in credits were improperly issued by the state Economic Development Department. Seven people eventually were convicted.

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