Blab Tech
Blackmagic Design Co-founder Peter Barber Sues Company and Fellow Founders Over Dividends and Share Sale Rights
In a courtroom showdown that could reshape the fortunes of one of Australia's most celebrated video‑technology firms, co‑founder Peter Barber has filed a lawsuit against Blackmagic Design and its two other founders, Grant Petty and Douglas Clarke. The case, lodged in the Federal Court of Australia, centers on Barber’s claim that he has been denied dividends, blocked from accessing company information, and prevented from selling his stake in the company.
Barber, who now resides in Singapore, says he owns roughly 28 % of Blackmagic Design. According to his statement of claim, the company’s remaining directors have been drawing millions of dollars each year while he has received neither salary nor dividends since 2022. He alleges that his assets are effectively trapped in the business, amounting to about $98 million. The suit also accuses Petty of sabotaging a potential investment from venture‑capital firm Five V Capital, which had valued Blackmagic Design between $900 million and $1.5 billion and was ready to invest before withdrawing after Barber alleged that Petty would not entertain a sale.
Barber’s grievance dates back a decade, when a falling out with Petty prompted him to consider selling his stake. Court documents show that he was removed from Blackmagic Design’s board after the company reported to ASIC that he had failed to perform his executive duties. In the same period, Barber claims Petty warned him that he would ‘fight back’ against any sale of shares to a third party and that Petty would be ‘the most hostile f*ing agent you can possibly imagine.’
The lawsuit asks the court to order Petty and Clarke—each holding 35.8 % of the company—to buy out Barber’s shares, to facilitate a sale to a third party, or to wind up the business entirely. The case is set to return to the Federal Court next month. Blackmagic Design, founded in Melbourne in 2001, has grown into a global player, generating more than $550 million in revenue last year and operating ten offices worldwide. Its flagship software, DaVinci Resolve, is used on Hollywood productions such as Avatar, Peaky Blinders, Grey’s Anatomy and Yellowstone, while its hardware has appeared in films like The Lion King and Avengers: Age of Ultron.
Barber’s legal team warned that the company’s directors may seek an application requiring him to set aside a sum of money to cover their legal costs should his case fail. Blackmagic Design has not yet issued a formal response to the allegations, and Petty, Clarke and the company’s lawyers are expected to file a defence next month. Barber’s involvement in the industry extends beyond Blackmagic Design; he was appointed CEO and managing director of Atomos last year. Atomos issued a statement to the ASX that the lawsuit has no impact on its operations, strategy, financial position or governance, and that it does not affect Barber’s ability to perform his duties.
The lawsuit marks the first public legal challenge among Blackmagic Design’s co‑founders and could reverberate through the company’s governance, its ability to attract investment, and the broader Australian tech ecosystem. While Barber alleges that the other founders have acted in a hostile manner, the company’s side has yet to be heard. The court will again hear the case next month, deciding whether Barber’s claims of denied dividends and restricted share‑sale rights are supported by evidence. Until then, the outcome remains uncertain, and the dispute continues to unfold against the backdrop of a rapidly expanding video‑technology market.
Barber, who now resides in Singapore, says he owns roughly 28 % of Blackmagic Design. According to his statement of claim, the company’s remaining directors have been drawing millions of dollars each year while he has received neither salary nor dividends since 2022. He alleges that his assets are effectively trapped in the business, amounting to about $98 million. The suit also accuses Petty of sabotaging a potential investment from venture‑capital firm Five V Capital, which had valued Blackmagic Design between $900 million and $1.5 billion and was ready to invest before withdrawing after Barber alleged that Petty would not entertain a sale.
Barber’s grievance dates back a decade, when a falling out with Petty prompted him to consider selling his stake. Court documents show that he was removed from Blackmagic Design’s board after the company reported to ASIC that he had failed to perform his executive duties. In the same period, Barber claims Petty warned him that he would ‘fight back’ against any sale of shares to a third party and that Petty would be ‘the most hostile f*ing agent you can possibly imagine.’
The lawsuit asks the court to order Petty and Clarke—each holding 35.8 % of the company—to buy out Barber’s shares, to facilitate a sale to a third party, or to wind up the business entirely. The case is set to return to the Federal Court next month. Blackmagic Design, founded in Melbourne in 2001, has grown into a global player, generating more than $550 million in revenue last year and operating ten offices worldwide. Its flagship software, DaVinci Resolve, is used on Hollywood productions such as Avatar, Peaky Blinders, Grey’s Anatomy and Yellowstone, while its hardware has appeared in films like The Lion King and Avengers: Age of Ultron.
Barber’s legal team warned that the company’s directors may seek an application requiring him to set aside a sum of money to cover their legal costs should his case fail. Blackmagic Design has not yet issued a formal response to the allegations, and Petty, Clarke and the company’s lawyers are expected to file a defence next month. Barber’s involvement in the industry extends beyond Blackmagic Design; he was appointed CEO and managing director of Atomos last year. Atomos issued a statement to the ASX that the lawsuit has no impact on its operations, strategy, financial position or governance, and that it does not affect Barber’s ability to perform his duties.
The lawsuit marks the first public legal challenge among Blackmagic Design’s co‑founders and could reverberate through the company’s governance, its ability to attract investment, and the broader Australian tech ecosystem. While Barber alleges that the other founders have acted in a hostile manner, the company’s side has yet to be heard. The court will again hear the case next month, deciding whether Barber’s claims of denied dividends and restricted share‑sale rights are supported by evidence. Until then, the outcome remains uncertain, and the dispute continues to unfold against the backdrop of a rapidly expanding video‑technology market.
