Howard Hughes

Context: During the 1940s to the late 1950s, the Hughes Tool Company ventured into the film industry when it obtained partial ownership of the RKO companies which included RKO Pictures, RKO Studios, a chain of movie theaters known as RKO Theatres and a network of radio stations known as the RKO Radio Network.  In 1948, Hughes gained control of RKO, a struggling major Hollywood studio, by acquiring 25% of the outstanding stock from Floyd Odlum's Atlas Corporation. Within weeks of acquiring the studio, Hughes dismissed three-quarters of the work force and production was shut down for six months during which time investigations were conducted of each employee who remained with RKO as far as their political leanings were concerned. Only after ensuring that the stars under contract to RKO had no suspect affiliations would Hughes approve completed pictures to be sent back for re-shooting. This was especially true of the women who were under contract to RKO at that time. If Hughes felt that his stars did not properly represent the political views of his liking or if a film's anti-communist politics were not sufficiently clear, he pulled the plug. In 1952, an abortive sale to a Chicago-based group connected to the mafia with no experience in the industry also disrupted studio operations at RKO even further.  In 1953, Hughes was involved with a high profile lawsuit as part of the settlement of the United States v. Paramount Pictures, Inc. Antitrust Case. As a result of the hearings, the shaky status of RKO became increasingly apparent. A steady stream of lawsuits from RKO's minority shareholders had grown to be extremely annoying to Hughes. They had accused him with financial misconduct and corporate mismanagement. Since Hughes wanted to focus primarily on his aircraft manufacturing and TWA holdings during the Korean War years, Hughes offered to buy out all other stockholders in order to dispense with their distractions.  By the end of 1954 Hughes had gained near-total control of RKO at a cost of nearly $24 million, becoming the closest thing to a sole owner of a Hollywood studio seen in three decades. Six months later, Hughes sold the studio to the General Tire and Rubber Company for $25 million. Hughes retained the rights to pictures that he had personally produced, including those made at RKO. He also retained Jane Russell's contract. For Howard Hughes, this was the virtual end of his 25-year involvement in the motion picture industry. However, his reputation as a financial wizard emerged unscathed. During that time period, RKO became known as the home of film noir classic productions thanks in part to the limited budgets required to make such films during Hughes' tenure. Hughes reportedly walked away from RKO having made $6.5 million in personal profit.  General Tire was interested mainly in exploiting the value of the RKO library for television programming even though it made some attempts to continue producing films. After a year and a half of mixed success, General Tire shut down film production entirely at RKO at the end of January 1957. The studio lots in Hollywood and Culver City were sold to Desilu Productions later that year for $6.15 million.  Beyond extending his business prowess in the manufacturing, aviation, entertainment, and hospitality industries, Hughes was a successful real estate investor. Hughes was deeply involved in the American real estate industry where he amassed vast holdings of undeveloped land both in Las Vegas and in the desert surrounding the city that had gone unused during his lifetime. In 1968, the Hughes Tool Company purchased the North Las Vegas Air Terminal.  Originally known as Summa Corporation, The Howard Hughes Corporation was formed in 1972 when the oil tools business of Hughes Tool Company, then owned by Howard Hughes Jr., was floated on the New York Stock Exchange under the Hughes Tool name. This forced the remaining businesses of the "original" Hughes Tool to adopt a new corporate name Summa. The name "Summa"--Latin for "highest"--was adopted without the approval of Hughes himself, who preferred to keep his own name on the business, and suggested HRH Properties (for Hughes Resorts and Hotels, and also his own initials). In 1988, Summa announced plans for Summerlin, a master-planned community named for the paternal grandmother of Howard Hughes, Jean Amelia Summerlin.  Initially staying in the Desert Inn, Hughes refused to vacate his room, and instead decided to purchase the entire hotel. Hughes extended his financial empire to include Las Vegas real estate, hotels, and media outlets, spending an estimated $300 million, and using his considerable powers to take-over many of the well known hotels, especially the organized crime connected venues. He quickly became one of the most powerful men in Las Vegas. He was instrumental in changing the image of Las Vegas from its Wild West roots into a more refined cosmopolitan city.  Hughes was involved in another near-fatal aircraft accident on July 7, 1946, while performing the first flight of the prototype U.S. Army Air Forces reconnaissance aircraft, the XF-11, near Hughes airfield at Culver City, California. An oil leak caused one of the contra-rotating propellers to reverse pitch, causing the aircraft to yaw sharply and lose altitude rapidly. Hughes attempted to save the aircraft by landing it at the Los Angeles Country Club golf course, but just seconds before reaching the course, the XF-11 started to drop dramatically and crashed in the Beverly Hills neighborhood surrounding the country club.  When the XF-11 finally came to a halt after destroying three houses, the fuel tanks exploded, setting fire to the aircraft and a nearby home at 808 North Whittier Drive, owned by Lt Col. Charles E. Meyer. Hughes managed to pull himself out of the flaming wreckage but lay beside the aircraft until he was rescued by Marine Master Sgt. William L. Durkin, who happened to be in the area visiting friends. Hughes sustained significant injuries in the crash, including a crushed collar bone, multiple cracked ribs, crushed chest with collapsed left lung, shifting his heart to the right side of the chest cavity, and numerous third-degree burns. An oft-told story said that Hughes sent a check to the Marine weekly for the remainder of his life as a sign of gratitude. However, Durkin's daughter denied that he received any money from his rescue of Hughes.  Despite his physical injuries, Hughes was proud that his mind was still working. As he lay in his hospital bed, he decided that he did not like the bed's design. He called in plant engineers to design a customized bed, equipped with hot and cold running water, built in six sections, and operated by 30 electric motors, with push-button adjustments. The hospital bed was designed by Hughes specifically to alleviate the pain caused by moving with severe burn injuries. Although he never used the bed that he designed, Hughes' bed served as a prototype for the modern hospital bed. Hughes' doctors considered his recovery almost miraculous. Hughes, however, believed that neither miracle nor modern medicine contributed to his recovery, instead asserting the natural life-giving properties of fresh-squeezed orange juice were responsible.  Many attribute his long-term dependence on opiates to his use of codeine as a painkiller during his convalescence. The trademark mustache he wore afterward was used to hide a scar on his upper lip resulting from the accident. CANNOTANSWER

Question: Why was Howard Hughes sued?
Answer: They had accused him with financial misconduct and corporate mismanagement.