'Sesame Street' files lawsuit against raunchy puppet movie 'The Happytime Murders' over ads

LOS ANGELES -- Melissa McCarthy's latest movie, "The Happytime Murders," faces legal action from the producers of "Sesame Street."

The movie, which is set to come out in August, is accused of confusing "consumers into mistakenly believing that 'Sesame Street' is associated with, has allowed, or has even endorsed or produced the movie and tarnishes Sesame's brand."

Yet the movie's lewd, profanity-laced trailer is made for adults and looks to separate itself from the "Sesame Street" brand. It's also rated R.

On May 25, Sesame Workshop released a statement about the lawsuit on its Twitter account.

The producers of the movie and distributor, STX Films, issued a tongue-in-cheek statement about the lawsuit Saturday evening, which was given by puppet Fred, Esq. along with his headshot.

A hearing on the lawsuit is scheduled for next week. The lawsuit was filed in an effort to eliminate the phrase "No Sesame, All Street" from the advertising.

The organization is looking for compensatory and punitive damages.