"Unlawful Killing" has been shelved permanently after Allied Stars was unable to obtain insurance that would indemnify them from potential lawsuits involving the film's contents.
"Unlawful Killing" was financed by Mohamed Al-Fayed, the billionaire father of Dodi Al-Fayed, Diana's boyfriend who perished with her in a spectacular 1997 car wreck in Paris. Mohamed Al-Fayed has long suspected the royal family had a role in the incident.
"It became undoable," Allied President Conor Nolan told The Hollywood Reporter. "We are all disappointed."
The Reporter said "Unlawful Killing" was set for release on Aug. 31 in the United States and other foreign markets, but not in France or Great Britain. Still, Allied had to make 87 cuts to the film to make it comply with British libel law.