Kennedy Center sued by National Opera over $17M of withheld funds

The Kennedy Center for the Performing Arts is facing another catastrophic financial blow after the Washington National Opera filed a 17 million lawsuit against the troubled institution for refusing to release funds the company claims belong to them.According to New York Times reporting, the suit filed Thursday accuses Kennedy Center officials of withholding endowment funds, donor gifts, and other contributions collected for the opera's benefit since the company struck out on its own earlier this year.W.N.O. reluctantly files this case to preserve its future and to protect its donors and artists, lawyers for the opera said in court papers, identifying the funds as donor gifts received over years that are critical to its operations.The opera's attempt at negotiation went nowhere, it said. For months, W.N.O. repeatedly tried to address these issues with the Kennedy Center, including through written requests, requests for meetings, and meetings with Kennedy Center leadership. Those efforts were met with indifference, the suit states.According to the Times, the opera's departure in January marked a dramatic rupture with an institution where the company had performed since 1971. Kennedy Center officials claimed at the time they decided to part ways due to a financially challenging relationship— but the lawsuit suggests a more sinister financial maneuver.The timing is damning, according to the Times' Julia Jacobs. The day before the separation announcement, Kennedy Center CFO Donna Arduin allegedly told opera leaders in an email that money in a fund containing bequests and contributions designated for the opera was being used as collateral for a line of credit for the center itself.Arduin asserted the funds belonged to the Kennedy Center. The opera company contends they were expressly reserved for its benefit. The suit does not specify how much money was used as collateral.The Kennedy Center's institutional collapse accelerated after President Trump assumed the chairmanship at the start of his second term and installed his allies as leadership. The move triggered an exodus of audiences, artists, and donors.The report noted that the opera's lawsuit comes amid broader institutional chaos at the Kennedy Center. A federal judge recently ordered Donald Trump's name removed from the center and temporarily blocked his plan to close the institution for two years of renovations. Trump and Kennedy Center lawyers appealed the decision Thursday.