According to the report, Sylvester Stallone claimed Warner Bros. intentionally hid Demolition Man’s profits.
Before news that sequel might be in the works, Demolition Man was allegedly caught up in a lawsuit between Warner Bros. and Sylvester Stallone over the movie.
This report was back in 2017, so it’s hard to say if the suit was resolved, but if what Sylvester Stallone said is correct, then they must have worked something out.
Time gap aside, it’s somewhat surprising that a sequel would be the in works.