The business pressures that toppled Abbott and Costello were as lethal as any bad review. In 1952 the team sued Universal Studios for $5,000,000 alleging breach of contract; the legal fight presaged a painful end to their long, lucrative studio relationship. Compounding the dispute, the Internal Revenue Service hit the duo with back-tax claims in the early 1950s—pressures that forced them to sell homes, personal assets, and, crucially, the rights to most of their films. Universal formally dropped them in 1955 after contract talks collapsed, and the financial squeeze pushed them into independent productions and eventual dissolution of the partnership in 1957. The episode is a textbook example of how studio contracts, tax enforcement, and reissue economics (Universal and reissue houses were re-releasing their old material) could strip performers of both control and livelihood in mid-century Hollywood.
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