In June 2009, Kasanoff and Threshold sued in bankruptcy court, arguing that they owned the copyright to many of the characters from the series. Warner Bros., having become the parent of New Line Cinema in 2008 (after over a decade of both operating as separate divisions of Time Warner), made a bid to purchase most of Midway's assets, including Mortal Kombat. After the two films, game publisher Midway filed for bankruptcy. The first film, Mortal Kombat, was released in 1995 and its sequel, Mortal Kombat: Annihilation, was released in 1997. The first film was produced by Lawrence Kasanoff’s Threshold Entertainment. Mortal Kombat is an American series of martial arts action films based on the fighting video game series of the same name by Midway Games.
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