Lawsuits
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The Justice Department and eight states sued Google on Tuesday, alleging that its dominance in digital advertising harms competition as well as consumers and advertisers — including the U.S. government.
The government alleges that Google’s plan to assert dominance has been to “neutralize or eliminate” rivals through acquisitions and to force advertisers to use its products by making it difficult to use competitors’ products.
The antitrust suit was filed in federal court in Alexandria, Virginia. Attorney General Merrick Garland said in a press conference Tuesday that Google’s dominance in the ad market means fewer publishers are able to offer their products without charging subscription or other fees, because they can’t rely on competition in the advertising market to keep ad prices low.
As a result of Google’s dominance, he said, “website creators earn less and advertisers pay more.”
The department’s suit accuses Google of unlawfully monopolizing the way ads are served online by excluding competitors. This includes its 2008 acquisition of DoubleClick, a dominant ad server, and subsequent rollout of technology that locks in the split-second bidding process for ads that get served on Web pages.
Google’s ad manager lets large publishers who have significant direct sales manage their advertisements. The ad exchange, meanwhile, is a real-time marketplace to buy and sell online display ads.
The lawsuit demands that Google break off three different businesses from its core business of search, YouTube and other products such as Gmail: the buying and selling of ads and ownership of the exchange where that business is transacted.
Garland said that “for 15 years, Google has pursued a course of anti-competitive conduct” that has halted the rise of rival technologies and manipulated the mechanics of online ad auctions to force advertisers and publishers to use its tools.
In so doing, he added, “Google has engaged in exclusionary conduct” that has “severely weakened,” if not destroyed competition in the ad tech industry.
Alphabet Inc., Google’s parent company, said in a statement that the suit “doubles down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”
Dina Srinivasan, a Yale University fellow and adtech expert, said the lawsuit is “huge” because it aligns the entire nation — state and federal governments — in a bipartisan legal offensive against Google.
This is the latest legal action taken against Google by either the Justice Department or local state governments. In October 2020, for instance, the Trump administration and eleven state attorneys general sued Google for violating antitrust laws, alleging anticompetitive practices in the search and search advertising markets.
The lawsuit in essence aligns the Biden administration and new states with the 35 states and District of Colombia that sued Google in December 2020 over the exact same issues.
The states taking part in the suit include California, Virginia, Connecticut, Colorado, New Jersey, New York, Rhode Island and Tennessee.
A former Atlantic Records talent scout is suing over allegations that label co-founder Ahmet Ertegun sexually assaulted her repeatedly from the 1980s to the 2000s – and that his conduct was enabled by a “boys will be boys” culture at the company.
In a lawsuit filed Monday in Manhattan court, Jan Roeg said Ertegun (who died in 2006) assaulted her on their first meeting in 1983 and that his abuse then continued for “decades” after that. She says Atlantic had “ample opportunities” to observe his behavior, but “did not act” to protect its female employees.
“The permissive ‘boys will be boys’ attitude that prevailed at companies such as Atlantic Records was not just about having harmless fun,” her lawyers wrote. “Instead, it gave license to powerful figures like [Ertegun] to physically and sexually abuse women with impunity, with no fear of repercussions or opposition from the people who depended on his company for their livelihood and lifestyle.”
Roeg’s lawsuit was filed under the New York’s Adult Survivors Act, a new law that created a one-year window for alleged abuse victims to file long-delayed lawsuits that would normally be barred by the statute of limitations. The statute just went into effect last week, and more high-profile cases in the music industry are expected over the next year.
The complaint contained extensive details of alleged misconduct by Ertegun, who co-founded Atlantic in 1947 and went on to become one of the industry’s most powerful executives. After the first incident, the complaint says he “violently sexually assaulted Ms. Roeg at his Upper East Side home.” On at least two occasions, she says she found him “openly masturbating in his office.”
But she says he made very clear that she could not push back: “Women who wanted to do business with Atlantic had to play along with Mr. Ertegun’s sexual desires, and could not rock the boat with a complaint or lawsuit.”
In addition to naming Ertegun’s estate as a defendant, the case also directly names Atlantic Records, which is a unit Warner Music Group. Her lawyers say the company failed to take action to rein him in – and that the company even took actions to cover up his misconduct.
“Atlantic’s top executives and other management had ample opportunities to observe Mr. Ertegun’s drunken, abusive conduct and hateful attitude towards women, including in Company meetings in which he would openly brag about and recount in detail sexually exploitative escapades he engaged in backstage at concerts and the like,” her lawyers wrote. “Atlantic also is known to have regularly paid money to women accusing Mr. Ertegun of sexual misconduct, both before and after his abuse of Ms. Roeg had begun.”
In a statement to Billboard, a representative for Warner Music Group said the company takes such allegations “very seriously” and stressed that the allegations dated years into the past. As is often the case in such long-delayed lawsuits, Atlantic’s corporate structure, polices and executives have changed dramatically in the years since the alleged misconduct took place.
“These allegations date back nearly 40 years, to before WMG was a standalone company. We are speaking with people who were there at the time, taking into consideration that many key individuals are deceased or into their 80s and 90s,” WMG wrote in the statement. “To ensure a safe, equitable, and inclusive working environment, we have a comprehensive Code of Conduct, and mandatory workplace training, to which all of our employees must adhere. We regularly evaluate how we can evolve our policies to ensure our work environment is free from discrimination and harassment.”
A representative for Ertegun’s estate could not be located for comment. But in a statement released to Rolling Stone, an attorney for the late executive’s widow said the case was “meritless and will be be vigorously defended on her behalf.”
A celebrity accountant is suing Kanye West for $4.5 million in allegedly unpaid fees, claiming the embattled artist and entrepreneur abruptly fired him just weeks after hiring him and told him he was “insane” if he thought he would stick to their agreement.
In a lawsuit filed Oct. 21, Thomas St. John claims he was hired in May by Yeezy LLC to serve as its chief financial officer for an 18-month contract with a $300,000 per month fee. He says he demanded those guarantees because of the “risks” of working with West and to assure the star “would not simply walk away.”
But St. John claims that West then did exactly that. At a June meeting at the pricey Malibu restaurant Nobu Ryokan, the accountant claims West “became heated and aggressive” and then abruptly terminated his new CFO.
“He screamed at Mr. St. John and made clear he no longer wanted to work with Plaintiff,” St. John’s lawyers wrote. “When confronted by the 18-month commitment that had just been made, Mr. West stated words to the effect of ‘the 18 month term was bullsh–’ and ‘you’re insane for even thinking I would stick to it.’”
If the new lawsuit is any indication, it looks like St. John plans to stick to it. He says West has made just three of the 18 payments he owes — and is demanding that a court order him to pay the $4.5 million owed on the deal.
Even though it involves millions of dollars, St. John’s new lawsuit might barely even register on the list of problems currently facing the once-beloved rapper.
After a string of antisemitic statements earlier this month, West has lost nearly every aspect of his once-formidable business empire. His representatives at CAA have dropped him, and his signature fashion partnerships with Adidas, The Gap and Balenciaga have all been terminated. It’s hard to know if he’ll even have lawyers to rep him in the current case, since many of his attorneys have begun to cut ties as well.
Even before the current whirlwind, West was already being accused of stiffing business partners. In early July, the high-end fashion rental service David Casavant Archive said West never returned more than a dozen “esteemed” items and owed $400,000 in late fees. A few weeks later, the production company Phantom Labs said the star owed $7.1 million for work done on his cancelled Coachella and other events.
A spokesperson for West could not be located to comment on the new lawsuit. Multiple former press representatives for West have recently told Billboard that they no longer work with him.