After years of waiting for the little demons to return to the big screen, there’s finally a update on the planned Ghoulies reboot. According to an exclusive report from Brain Mutant, a lawsuit involving the franchise has been settled, potentially clearing a major obstacle to the revival.
Screenwriter Theo Lemasters filed the lawsuit against Ghoulies co-creator Jefery Levy in late 2025. In a statement to Brain Mutant, Levy confirmed the resolution, saying, “Yes […] we settled.”
Levy also offered an encouraging update on the reboot’s prospects, telling Brain Mutant: “We have an incredible reboot script. Cannot get financing until the legal issue is settled. Once the legal issue is settled, we will begin production on Ghoulies 2027.”
Why Was the Ghoulies Reboot Delayed?
The planned revival was announced in 2024, when original Ghoulies writer/director Luca Bercovici and co-writer Jefery Levy revealed that they had reclaimed the domestic rights to the franchise. Their plans included a new trilogy of movies, a book series, and a line of figures, apparel, and collectibles.
Screenwriter Theo Lemasters was also involved in the project. But according to Brain Mutant’s report, the legal dispute between Lemasters and Levy became an obstacle to moving forward with the reboot.
Brain Mutant traced the lawsuit to public federal court records under Case No. 2:25-cv-11481. The report states that a settlement conference took place by video on October 2, 2026, before Magistrate Judge Margo A. Rocconi. Defense counsel filed a Notice of Settlement on October 5, and District Judge Fernando M. Olguin issued an order dismissing the action on October 6.
With Levy now confirming the settlement, the focus can shift back toward the proposed film.
A Ghoulies Comeback Has Been a Long Time Coming
The original Ghoulies arrived in 1985 and became a memorable entry in the era of creature features that followed in the wake of Gremlins. Directed by Bercovici, the film follows Jonathan, a young man who discovers his connection to a dark family history after moving into his late father’s house. When he performs a ritual from one of his father’s books on black magic, he inadvertently unleashes the small demonic creatures known as Ghoulies.
The film spawned three sequels: Ghoulies II (1987), Ghoulies Go to College (1991), and Ghoulies IV (1994). The franchise has been dormant for decades, making the proposed revival an appealing prospect for fans of ’80s creature features.
Actor Michael Des Barres, who played cult leader Malcolm Graves in the original film, suggested in a 2024 social media post that he might be asked to reprise the role.
Now, with the lawsuit reportedly settled, the project may finally have a clearer path forward. Whether the new Ghoulies can secure financing and begin production in 2027 remains to be seen, but at least there’s movement on a revival that has been in the works for years.
Would you like to see the Ghoulies franchise return with a new movie trilogy? Let us know in the comments!
The post Ghoulies reboot update: lawsuit settled, Jefery Levy eyes 2027 production appeared first on JoBlo.
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