With “The Chosen,” a series financed by thousands of common Christians who purchased shares for as little as $1, Dallas Jenkins has spent almost ten years narrating the story of Jesus. Some of those same believers now claim they were forced out of the very thing they created as the show gets closer to its final seasons. According to Jenkins, the charge is “categorically false.”
Christopher Garabedian, a former biopharma executive who invested $300,000 in 5&2 Studios’ predecessor back in 2019, filed the lawsuit last month in the Delaware Court of Chancery. According to his own account, he anticipated holding the 150,000 shares for a very long time. Rather, he claims that the company used a reverse stock split to forcefully cash out over 16,000 minority shareholders for $3.75 per share. Garabedian took home about $560,250. On paper, it might be a respectable return, but that isn’t really his point.
The valuation is the key. The complaint claims that 5&2’s own financial projections attracted bids that suggested a value of about $150 million when it was shopping itself to outside buyers. After a Goldman Sachs analysis, the amount had decreased to $52.9 million when it turned around and bought out its small shareholders instead. According to the lawsuit, the business never provided a sufficient explanation for the gap. It’s a startling disparity, and one can imagine that it will be central to the Delaware court’s final ruling.
And then there’s the detail that hurts the most—at least for a religious fan base. According to the complaint, the vote on the reverse stock split took place during Holy Week. Almost 80% of minority shareholders abstained from voting. It is impossible to determine whether the timing was coincidental or cynical from the outside, but the optics are difficult to ignore for investors who viewed their shares as both a financial wager and an act of devotion. Additionally, the lawsuit alleges that funds intended for the show’s last season were taken out to pay for the buyout.
Jenkins, the executive chairman of 5&2 and the show’s creator, isn’t keeping quiet. He said in a statement, “We can’t say much because of litigation, but we also won’t hide behind ‘No comment,'” stressing that the business has been open and honest from the start and has gone above and beyond what is required by law and finance. He expresses his eagerness for the court’s review and his confidence that the complete record will stand up.
This is a real conflict that extends beyond a single lawsuit. Jenkins frequently made this argument on livestreams to those who supported the project as ministry first and investment second. “The Chosen” invented a model in which fans were not just viewers but also part-owners. The crowdfunding, which raised a record $11 million for season one and more than $44 million for the final season, was made possible by this emotional entanglement. It might also be the reason this disagreement feels so raw. Disappointment cuts differently when money and mission are blurred.
The actual show continues. Prime Video will stream the final two seasons, which cover the crucifixion and Resurrection, and spinoffs are already in the works. The fifth season alone brought in $40 million at the box office, and future earnings through 2029 are predicted to be close to $1.4 billion, according to the lawsuit. It’s difficult to ignore the irony as this plays out: a show about faith and treachery is now confronted with the question of who maintained faith with whom. The legal response will be decided by the court. It might take more time for the 16,000 shareholders to resolve theirs.
