Angel Studios, the faith-based media company that distributed the breakout hit Sound of Freedom in 2023, is facing a lawsuit for breach of contract. It’s yet another example of creative partners claiming that the streaming and entertainment giant, which went public last fall at a valuation of $1.6 billion and has built a following among American conservatives, is in the habit of screwing over the smaller producers it works with, aggressively co-opting their original content to magnify the Angel brand.

Slingshot, the production company behind the Angel-backed animated series Young David and forthcoming companion film David,...