Lawsuit accuses Warhol estate of manipulating art prices

The owner of a silkscreen self-portrait of Andy Warhol is suing the late artist's estate for twice denying that his work is an authentic Warhol.

Screenwriter and producer Joe Simon-Whelan accuses the estate of manipulating the price of works by the American pop artistfor its own benefit.

The owners of Warhol paintings and silkscreens risk having the authenticity of the work denied at any time on a whim, he said in a $20-million US lawsuit filed Monday in U.S. District Court in New York.

The Andy Warhol Foundation for the Visual Arts Inc. and the Andy Warhol Art Authentication Board force owners of each Warhol work to sign contracts giving them a "perpetual veto right over its authenticity," said Simon-Whelan, who is based in London.

Warhol paintings can sell for millions of dollars, but a veto from the authentication board can result in a painting becoming valueless.

Simon-Whelan bought a silkscreen portrait of Warhol, titled Double Denied, for $195,000 US in 1989, two years after Warhol died, he said in court papers.

The lawsuit said Double Denied is one of a small series of paintings created by Warhol in 1964 so he could exchange them for then-rare and expensive video cameras, video recorders and other equipment.

Simon-Whelan said he had a deal to sell the painting in 2001 for $2 million US, until the authentication board stamped "DENIED" on the back of it in red ink, which bled through to the front.

The silkscreen was denied despite having been authenticated multiple times in the past by the estate.

A second attempt to authenticate the painting in 2003 was also denied, he said in court papers.

Simon-Whelan accused the foundation and the board of adopting a policy of rejecting works to induce artificial scarcity in the market for Warhol creations.

He alleges the estate provides "a facade of corporate credibility obscuring a deeply corrupt enterprise that enables defendants to benefit from Warhol's art and reputation."

The foundation had no comment on the lawsuit.