Charles Sykes / Invision/AP 1 / 9
Charles Sykes / Invision/AP 1 / 9

An investment company is not suing Nicolas Cage for fraud and a reported $36.7 million, People magazine has clarified.

Christmas reports suggested the movie star was facing another huge financial battle with Red Curb Investments, but it appears the initial details were greatly exaggerated.

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The private lender is actually suing the actor for failure to pay back almost $3 million in loans from 2007.

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Red Curb is additionally suing Cage's former accountant, Samuel Levin, for $3 million claiming he defrauded the company by neglecting to disclose the Oscar winner's financial status.

"[Red Curb] was assured that Cage had substantial assets consisting of high-end residential property, yachts, airplanes, antiques, custom automobiles, jewelry, furs, and other valuable assets sufficient to assure repayment of the... loan," according to the lawsuit, filed in Los Angeles Superior Court on Dec. 18 and obtained by Access Hollywood.

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"The representations made concerning Cage's financial condition were false and were made with the intent to deceive [Red Curb] about Cage's true financial condition. By the summer of 2007, Defendants [sic] were aware that Cage was hopelessly in debt, yet continued to live in a lavish manner."

Red Curb is suing the other defendants, including a mortgage broker, a financial group, and a real estate trust, for a minimum of $25 million, according to the documents.

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Cage faces huge financial problems after he was slapped with a tax lien in October after reportedly failing to pay income tax on earnings dating back to 2007. He is also facing other claims of unpaid tax relating to earnings from 2002 to 2004.