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Actress Catherine Corcoran just took her breach of contract dispute with “Terrifier” director Damien Leone and producer Phil Falcone to a Los Angeles federal court on Sunday. But allegations that the filmmaking duo has been bullying “Terrifier” contributors out of their fair credit and compensation predate Corcoran’s new claim. Several accusers point to disagreements over “Terrifier” merchandising, a critical element in the pending legal case that may jeopardize the future of the lucrative slasher series.

“It doesn’t surprise me,” said an anonymous source who worked at Dread Presents, the in-house movie studio for the horror brand Dread Central, which released the first “Terrifier” in 2018. “Damien’s a strong personality. I have respect for him. He’s nice enough in person, but when it comes to doing business, he’s savage.”

“I don’t buy the excuse that they’re from New York or New Jersey or whatever,” said another, who also worked at Dread Presents then. Asked about the sexual harassment alleged in the new lawsuit (Falcone is accused by name of photographing Corcoran nude without her consent while she was stuck in a special effects rig), he said, “I’m inclined to believe Catherine. It seems like something Phil could do.” 

Falcone and Leone have denied the allegations in Corcoran’s claim through The Hollywood Reporter. They did not respond to IndieWire’s request for comment on the additional allegations, despite repeated requests to get in contact with Leone, Falcone, and their defense attorney.

Dread Central’s parent company, Epic Pictures, acquired Leone’s lo-fi horror film in 2017 ahead of their new label’s official launch the next year. That was at the height of the #MeToo movement, when “Terrifier” was not popular with everyone inside the company, according to four ex-employees who said Dread was mostly run by women then. They were supported by several men at Dread who reportedly “hated” the movie and specifically took issue with its centerpiece kill featuring Corcoran, as IndieWire learned.

“I almost quit my first week at Dread Central Presents because I was like, ‘Well, this is misogynist crap and I don’t like it at all. If that is what this label is going to be, then I’m not the right person for this position,” said one source. As seen in the first “Terrifier,” the brutal murder of Dawn (Corcoran) — stripped naked, hung upside-down, and sawed in half from vagina to face — is widely considered the spark that ignited “Terrifier” mania as we know it today. The moment is so shocking it demands to be talked about, and it created buzz that spread far beyond the film’s world premiere at the 2016 Telluride Horror Show.

“The irony is Steve was right,” said the same ex-Dread Central source. That source still doesn’t like the “Terrifier” movies but acknowledges his former colleague, the brand’s co-founder and the site’s former editor-in-chief Steve Barton, as integral to their success. “It obviously became a huge franchise, and I always give him credit for that. I didn’t see it, and I didn’t want to see it, but he was definitely responsible for that one.”

Last year, Barton — who has gone by “Uncle Creepy” online for years — released a memoir titled “A Comedy of Tragedies.” In it, Barton discusses one of his most complicated achievements: getting the naysayers inside Dread and the wary Epic folks who’d just met them to back “Terrifier.”

“I launched a fucking juggernaut,” Barton told IndieWire in a recent interview. “But I was stupid enough to not get anything in writing. So, that’s my fault.” 

Barton is the first to admit he isn’t owed much here legally, but the seasoned genre vet threw his social media reputation and industry connections he’d spent decades building behind “Terrifier.” He said he never asked Leone and Falcone for money, but helped the indie as it was starting to build word of mouth. A similar argument is being made by Corcoran’s legal team, who say they’ve got a written deal on their client’s side that entitles her to 1 percent of “Terrifier” profits across all revenue generated by the franchise.

“My vision for Dread Central was to give the indie filmmaker as much of a voice as the studio filmmaker and level that playing field,” said Barton, speaking to headwinds that have long plagued “Terrifier.” The 2011 short that inspired the feature franchise was also included in Leone’s 2013 anthology film “All Hallow’s Eve,” which gained a lower level of notoriety for the image of a woman kidnapped by Art the Clown (the role was originated by Mike Giannelli) — then kept alive as her limbs and breasts are hacked off. The words “cunt,” “bitch,” “slut,” and “pig” appeared carved into her bare body.

An established name and face in the genre landscape when it wasn’t clear if Art (now played by David Howard Thornton) could ever find a mainstream audience, Barton championed “Terrifier” loudly for several years. The first film was made on a shoestring budget of just $35,000 and funded by producer Falcone after he worked with Leone on his own directorial debut, titled “Joe’s War” (2015). Leone and Falcone have since gained a reputation in the horror world as a fearsome twosome with several sources describing them as “ride or die” partners who earnestly “love” each other. Some say, to a fault.

“Of all the filmmakers I worked with, I loved all of them except the ‘Terrifier’ guys,” said one of the ex-Dread sources. “They’re the only ones that were completely uncooperative every step of the way.”

“Phil is very much Damien’s shield in a lot of ways,” said Barton. “I don’t say that in a bad way. I say that in a very fatherly way. I think Phil really cares about Damien, and Damien knows Phil feels that way about him. In a lot of ways, Phil is the tail that wags the dog. One of the last things I said to Damien was, ‘I always loved you guys. I always will love you guys, but mark my words, Phil is going to sink this ship.’”

Across “Terrifier” (2018), “Terrifier 2” (2022), and “Terrifier 3” (2024), Barton watched as the beloved black-and-white clown became a global phenomenon, but the multi-hyphenate professional was only involved in promoting the first two films. The sequels were released at Cineverse, exploding as eventized theatrical releases that made millions at the box office and firmly established Art as the first serious addition to slasher head canon since “Saw.” Depending on who you ask, Dread either couldn’t stay competitive in the bidding war for “Terrifier 2” — or Leone didn’t want them to.

“We totally fumbled the ball on theatrical,” said an anonymous source integral to the “Terrifier” release at Dread Presents. “We put it out on 10 screens and that was kind of it.” But even foregoing most movie theaters, “Terrifier” wasn’t a flop. It repeatedly sold out as a Blu-ray release (marked at $19.99), and it even merited a steelbook edition (priced at $49.99), both of which bear Corcoran’s image and the controversial sawing scene on the packaging. 

“I can’t remember a single other Dread title that we needed a second [Blu-ray] order of, and we needed several for ‘Terrifier,’” said the same source, who recalled needing all hands on deck to fill physical media orders fast enough. “It’s the only one that we exceeded our 1,000-order minimum — at least several times over. We could not print enough. It became evidently clear that it was going to be huge, probably the biggest release for us.”

Simultaneously, Barton was pushing the film’s reputation hard online. He used the recognizable Dread Central brand and his own media personality to introduce audiences to a new director he thought would be a lifelong friend. Speaking with IndieWire, he recalled feeling responsible for “Terrifier” viewers even as his own position in the franchise’s history became less clear. 

“I made sure that the fan base, they weren’t just on this ride with us,” Barton said. “They were in the fucking car next to us.” 

Egos abound in Hollywood, and with a success as big as “Terrifier,” it’s no surprise that several folks on the distribution side want credit for first recognizing Art the Clown as the icon he would become through the trilogy. (“Terrifier 4” has not yet begun production or landed a distribution deal.) But Barton bet big by walking away from Dread Central in part because of the movie. He got bought out of his 20 percent share in the company and made supporting “Terrifier” his full-time job. 

Per Barton, he packed and shipped “Terrifier” merchandise out of his basement — while playing watchdog for bootleg products on Etsy and routinely interfacing with fans who had questions about available merchandise. He says he also negotiated major convention appearances for Art the Clown as well as inspired his inclusion in video games and at popular horror events, circles where Barton was already well known but Leone and Falcone were not. Barton was not on set for any “Terrifier” production, but his repeat appearances promoting the franchise were eventually cited by Falcone as proof he had overstated his role.

Barton told IndieWire the email from Falcone “firing” him in November 2023 came as a shock. Going beyond what a typical producer might do, the Dread Central co-founder had always seen his efforts to support the lifecycle of the film as a good thing for a low-budget production. He arranged press features, celebrity-backed screenings, and completed a wide range of office PA duties Falcone and Leone might’ve had to hire someone to do otherwise. Never stepping foot on set, Barton says he still endeavored to support the productions in ways that mattered for the art and its bottom line. The week before he was dismissed, Barton said Leone had been showing him test footage for “Terrifier 3.”

“I feel like Dr. Frankenstein being haunted by his monster, and it breaks my heart,” said Barton, who described feeling conflicted every time he sees “Terrifier” in stores or on screen. “I am still living paycheck to paycheck, and it hurts to look at. Even [on Halloween], I have little kids dressed like Art knocking on my door. I get very sad and upset each time I see it. Because it harkens back to the whole, ‘What did I do wrong? I’m a failure. I should be taking better care of my wife and kids…’ thing.”

By most accounts, Barton’s falling out with Leone and Falcone isn’t actionable and was repeatedly short-handed to IndieWire by sources on both sides as “creative differences.” He wasn’t under any kind of formal contract, and, according to Barton, he wrongly assumed he would be taken care of as the franchise grew. The email and text exchanges that severed the relationship between Barton and Leone/Falcone paint very different pictures of his contribution to “Terrifier.” Falcone claimed Barton was taking credit he was never owed, and Leone backed his partner up, saying, “This is between you and Phil.”

Another anonymous source closer to the production characterized the split differently. Per their account, Barton had seriously overstepped and created a dynamic that was doomed to fail. Similar to Corcoran’s complaint, that POV places the burden of asking for “Terrifier” credit on everyone but Leone and Falcone.

Still, the public connection between Barton and “Terrifier” persists to this day. Even having sold off all of his favorite collectibles — partly from financial need but also out of hurt — in an event he called a “Terri-Fire Sale,” Barton says he still gets tagged endlessly in posts about the killer clown. The same anonymous source said that they weren’t surprised allegations of wrongdoing had surfaced regarding the making and marketing of the film, emphasizing that inexperienced productions often make mistakes as they become more successful.

Barton’s story bears a striking resemblance to the narrative outlined in Corcoran’s legal claim and suggests the franchise was enjoying demonstrable success at a time that could be critical to determining if and how much she is owed. It’s also just the start of a string of similar stories, many from “Terrifier” fans like Barton who have raised the alarm on their own business deals with Leone and Falcone.