The prison scenes were filmed inside a real prison. The warden of the prison agreed to the use of the prison for the movie if 1/3 of the money was used to improve the prison. Richard Pryor talks about his experiences behind the scenes on his Here And Now DVD See more...
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Factual error: At the end of the movie, they break out of prison and their lawyer finds them at the hangar. She tells them they are free and they celebrate and get in the car and drive off. Innocent or not, they broke out of prison. I highly doubt red tape would allow an official to say, "Oh well, never mind, we were gonna release them anyway."