Legal News
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A court-ordered auction of Damon Dash’s one-third stake in Jay-Z’s Roc-A-Fella Records has been postponed for at least three weeks, court documents show, and the minimum price for the sale will be more than doubled to help cover Dash’s massive unpaid tax and child support debts.
The auction – in which the U.S. Marshals Service will sell off Dash’s 33.3% interest in the storied record company – had been set to be held Thursday. But in an order Tuesday, a federal judge granted a motion to extend the deadline for the event to Sept. 21.
The delay will give more time to sort out who will get paid first from the proceeds. The auction was originally intended to pay off an $823,000 judgment against Dash won by movie producer Josh Webber in a civil lawsuit over a failed film partnership. But New York City has jumped into the case to demand more than $193,000 in unpaid child support, and New York state later claimed that the auction must also help pay down more than $8.7 million Dash owes in back taxes.
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In a court filing on Monday, Webber’s attorney Chris Brown alerted the judge that he had reached an agreement with New York City and New York state to sort out a pecking order for the proceeds, but he also asked to push back the auction; it was that request that was granted by the judge on Tuesday.
Under the agreement, the minimum bid for Dash’s stake will be increased from $1.2 million to $3 million. New York City will get first dibs at that money, taking at least $193,000 to cover the money Dash owes in child support. That will be followed by $1.7 million going to the state to cover part of the massive tax bill, followed by the original $823,000 in legal damages owed to Webber. After other civil litigants are paid smaller sums, the remainder of the tax bill – roughly $7 million – will be paid to New York state. If anything is left, it will go to Dash himself.
Other issues remain to be ironed out. New York City is still seeking an additional deposit of nearly $70,000 more from Dash to cover ongoing child support payments in the future, and wants any payouts from the auction paused until a judge decides the issue. Brown has opposed that motion, and a hearing before the judge to decide the issue is set for next month.
Dash himself was not involved in the deal. In court filings, his attorney Natraj Bhushan said his client was “not privy to these discussions, had no input on the same, and disagrees with the priority given.” In a statement to Billboard on Wednesday, he said the pecking order had yet to be finalized.
“We look forward to upcoming court conference so that all interested parties can be heard and the court can decide who gets what, and in what priority from the forthcoming public auction,” Bhushan said.
Brown declined to comment on Wednesday. Attorneys for New York City and New York state did not immediately return requests for comment.
Whenever it happens, the auction will be for Dash’s stake in Roc-A-Fella Inc., an entity whose primary asset is Jay-Z’s iconic debut album Reasonable Doubt. The rest of the catalog of music released by Roc-A-Fella, which dissolved as an active label in 2013, isn’t involved.
The owners of the other two-thirds of Roc-A-Fella — label cofounders Jay-Z (Shawn Carter) and Kareem “Biggs” Burke — have already attempted to stop the auction, including making changes to the company’s bylaws and intervening in the lawsuit. But a federal judge rejected such opposition in February.
Though the auction’s minimum bid has now been increased, it’s entirely unclear how much a potential buyer is going to be willing to spend on Dash’s one-third stake.
The royalties from Reasonable Doubt would likely provide them a revenue stream; since its 1996 release, Reasonable Doubt has racked up 2.2 million equivalent album units in the U.S., according to Luminate, including 21,500 units so far this year. But the eventual buyer also would be a minority owner in a company controlled by hostile partners, with little ability to perform typical due diligence on the asset they’re about to purchase. And Roc-A-Fella’s rights to Reasonable Doubt will potentially expire in 2031 thanks to copyright law’s termination right, which would allow Jay-Z himself to reclaim full control.
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between. This week: Shaboozey gets into a thorny legal battle with his former label; Beyoncé and the Foo Fighters move to stop Donald Trump from using their songs; another lawsuit erupts over the control of the Ramones; and much more.
THE BIG STORY: Shaboozey’s Looming “Bar” Fight
Amid the massive success of Shaboozey’s “A Bar Song (Tipsy),” an acrimonious legal battle is brewing in Los Angeles Superior Court. On Wednesday (Aug. 21), the breakout country star (born Collins Obinna Chibueze) filed a lawsuit against music publisher Warner Chappell and his former record label, Kreshendo Entertainment, accusing them of breach of contract. Two days later, Kreshendo sued him right back, accusing him of “a strategy of fraud and misrepresentation.” The dispute? The extent to which Shaboozey is still bound by a deal he signed with Kreshendo back in 2016, when he was a relatively unknown artist. Both sides agree that the deal was terminated in 2019, but they are at odds over Shaboozey’s continuing obligations to his old label. And Warner has gotten roped in because it administers his publishing rights, which play a key role in the dispute. The litigation is getting underway just as “A Bar Song” has emerged as one of the biggest hits of 2024. A genre-blending hit that interpolates J-KWON‘s 2004 rap hit “Tipsy” into a bouncy pop country track, the track has spent seven weeks at No. 1 on the Billboard Hot 100, marking the longest chart-topping stint of the year. In its lawsuit, Kreshendo says it was that sudden success that sparked the legal battle: “Shaboozey had no issue with any of these terms for years. It was only after he recently released the ‘Bar Song,’ which has become a huge hit, that he has taken sudden issue with the terms he expressly agreed to.” We’ll keep you posted as the dispute moves ahead in court…
Other top stories this week…
FAMILY FUED – A California appeals court issued a final ruling allowing the Michael Jackson estate to proceed with a $600 million sale of the singer’s catalog to Sony Music, rejecting objections from his mother Katherine Jackson that aimed to block the deal. She’d argued that the deal “violated Michael’s wishes,” but the court ruled that the superstar’s will gives his executors (John Branca and John McClain) “broad powers” to ink such transactions. HOLD UP – Beyoncé‘s record label and music publisher sent a cease-and-desist to Donald Trump‘s presidential campaign over its use of the megastar’s song “Freedom” in a social media video, prompting the campaign to quickly pull down the offending post. The Bey track serves as the official theme song for the campaign of Democratic presidential nominee Kamala Harris — likely the reason why the Trump campaign used it. ANTI-HERO? – Elsewhere in Trump world, the Foo Fighters publicly claimed that they had not authorized the former president to play their 1997 anthem “My Hero” at a rally with Robert F. Kennedy Jr. and would seek to prevent him from doing so in the future. The campaign later claimed that it had, in fact, obtained proper licenses to perform the song. Either way, the band said that any royalties received as a result of this usage would be donated to the Harris/Walz campaign. DAME’S UNPAID TAXES – Just a week before a court-ordered auction of Damon Dash’s one-third stake in Jay-Z’s Roc-A-Fella Records, there was a stunning new wrinkle: He owes more than $8.7 million in unpaid taxes — and New York state says the proceeds from the Roc-A-Fella sale must be used to pay them. The new claim complicated an already complex situation, in which Dash’s stake in the storied record label is being sold off by U.S. Marshals to pay off an $823,000 civil judgment. HEY, HO, LET’S SUE – Opening up a new front in the never-ending legal war over the Ramones, Joey Ramone’s brother (Mitchel Hyman, better known as Mickey Leigh) sued Johnny’s widow (Linda Cummings-Ramone), accusing her of infringing the band’s trademarks by carrying out an “unrelenting quest” to associate herself with the Ramones. DIDDY CASE UPDATE – Sean “Diddy” Combs asked a federal judge to dismiss a case filed in February by Rodney “Lil Rod” Jones, arguing that the “salacious” lawsuit was filled with “blatant falsehoods” designed to pressure him into paying a lucrative settlement: “Running to nearly 100 pages, it includes countless tall tales, shameless celebrity namedrops, and irrelevant images.” SNEAKER SETTLEMENT – The sneaker company Vans and a Brooklyn art collective called MSCHF reached a settlement to end a long-running trademark lawsuit over Tyga‘s “Wavy Baby” sneakers — a parody of the company’s classic Old Skool brand of shoes. The artists said Tyga’s pricy sneakers were akin to an art project, and thus protected by the First Amendment. But Vans called it “blatant” infringement of the company’s IP, and federal courts repeatedly agreed with that assessment. OUTKAST TRADEMARK CASE – The legendary rappers sued an EDM duo called ATLiens, the same name as one of OutKast’s best-known songs. Big Boi and André 3000 claimed that the name (a combo of “aliens” and their hometown of Atlanta) is a novel linguistic term that had been “invented by OutKast” — and that the rival group is confusing music fans by using it. SHKRELI SEIZURE – A federal judge ordered convicted pharma executive Martin Shkreli to hand over his copies of Wu-Tang Clan’s Once Upon a Time in Shaolin, rejecting his claims that he had a right to retain duplicates of the one-of-a-kind album even after he forfeited it to federal prosecutors.
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Sean “Diddy” Combs wants a federal judge to end one of the several sexual abuse cases he’s facing, arguing that the “salacious” lawsuit is filled with “blatant falsehoods” designed to force him into a settlement.
In a motion filed Monday in Manhattan federal court, attorneys for the star ask a judge to dismiss a case filed in February by Rodney “Lil Rod” Jones, who claims Combs sexually assaulted, drugged and threatened him while he worked as a producer on the rapper’s 2023 The Love Album.
Though they say the case is really nothing more than a “run of the mill commercial disagreement,” Combs lawyers claim Jones’ lawyer added “meaningless allegations and blatant falsehoods” in order to “generate media hype and exploit it to extract a settlement.”
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“Running to nearly 100 pages, it includes countless tall tales, shameless celebrity namedrops, and irrelevant images,” Combs’ lawyers write. “Yet, despite all its hyperbole and lurid theatrics, the [complaint] fails to state a single viable claim against any of the Combs defendants.”
The filing took personal aim at Jones’ attorney Tyrone Blackburn, citing a recent ruling in a separate case in which a federal judge sharply criticized the lawyer for filing suits designed to “garner media attention” and “embarrass defendants.”
Once one of the most powerful men in the music industry, Diddy has been hit with at least seven civil lawsuits alleging sexual abuse over the past year, including claims by ex-girlfriend Cassie Ventura that were followed by a video showing him assaulting her. The hip-hop mogul is also facing an apparent federal criminal investigation after authorities raided his homes in March.
Though the rapper has denied the legal allegations against him, he issued an apology in May over his conduct captured on the video of the Ventura attack: “My behavior on that video is inexcusable. I take full responsibility for my actions in that video.”
Jones sued in February, accusing Diddy not just of sexual assault but also of operating a sweeping conspiracy that violated the Racketeer Influenced and Corrupt Organizations Act — the federal RICO statute that’s more often used in criminal cases against mobsters and drug cartels. He also accused Combs and others of violating federal sex trafficking laws.
In Monday’s motion to dismiss the case, attorneys for the rapper argued that Jones had fallen well short of showing that he could sue under RICO.
“Because litigants frequently attempt to transform garden-variety fraud or breach of contract cases into RICO claims, the civil provisions of RICO are the most misused statutes in the federal corpus of law,” Combs’ lawyers write, quoting from earlier rulings. “Thus, courts strive to flush out frivolous RICO allegations at an early stage of the litigation.”
Combs lawyers also asked the judge to dismiss the other claims in the case. They argued that the claim of sexual assault is spelled out in “two vague paragraphs” in which Jones “fails to allege essential facts, such as the where, when, and how of the purported misconduct, or even any conversation about, report of, or witness to any particular occurrence.”
Jones’ attorney, Blackburn, did not immediately return a request for comment from Billboard. But in a statement to Deadline, Blackburn called the motion to dismiss “nothing more than a billing exercise by Sean Combs’ latest set of lawyers.”
“It is a weak attempt to fill their pockets before he is indicted, and they decide to haul ass, just like his five previous lawyers did,” Blackburn told the outlet.
Jones’ case initially named Universal Music Group (UMG) and CEO Lucian Grainge as defendants, claiming they “aided and abetted” Combs in his alleged misconduct and were members of the RICO conspiracy. But Jones later dropped them from the case, with Blackburn admitting there had been “no legal basis for the claims and allegations that were made against the UMG defendants.”
Read the entire motion filed by Combs’ lawyers here:
UPDATE (Aug. 26): Shaboozey’s ex-record label sued him back after the singer filed his own lawsuit against the company, accusing him of “fraud” to avoid fulfilling his contractual obligations. You can read more here.
PREVIOUSLY (Aug. 23): Amid the chart-topping success of “A Bar Song (Tipsy),” Shaboozey is now suing music publisher Warner Chappell — claiming the company is stonewalling his efforts to exercise a contractual provision that would give him an early exit from his deal.
In a case filed Wednesday (Aug. 21) in Los Angeles, the country star (born Collins Obinna Chibueze) claims his publishing administration deal with Warner-Tamerlane (a unit of Warner Chappell) contained an acceleration clause — meaning he could repay 110% of advances to speed up the expiration of the deal.
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Shaboozey’s lawyers say he invoked that clause last month — perhaps unsurprisingly, given the massive success of “Bar Song.” But they claim Warner has, thus far, declined to even tell him how much is owed.
“To date, Warner has refused to disclose to plaintiff the total amount of the unrecouped balance of prior advances it made,” writes Todd Bonder, the star’s attorney. “Warner’s conduct violates the administration agreement signed between the parties.”
The lawsuit comes amid a breakout year for Shaboozey. “A Bar Song,” a genre-blending hit that interpolates J-KWON‘s 2004 rap hit “Tipsy” into a bouncy pop country track, has spent six weeks at No. 1 on the Billboard Hot 100, tying the longest chart-topping stint for a song in 2024.
In his complaint, Shaboozey also names his former record label, Kreshendo Entertainment, as a defendant. He claims the company — which he left in 2019 before signing a new record deal with Empire — is the reason Warner is refusing to turn over the crucial information.
“Kreshendo and [others] have instructed Warner not to provide plaintiff the total unrecouped balance related to advances made with respect to the compositions or has refused to authorize Warner to provide such information,” his lawyers write.
The dispute appears to turn on Shaboozey’s argument that he personally took over Kreshendo’s role in the contract with Warner after he terminated his label. In his legal filings, he says that Warner “has not agreed” with such an interpretation.
The lawsuit also claims that Kreshendo released three separate Shaboozey songs in 2019 after he had already terminated the deal — “More,” “Joan Jett” and “Prosperity” — without his permission.
A spokesman for Warner Music Group did not immediately return a request for comment. A spokesperson for Kreshendo could not immediately be located for comment. A publicist for Shaboozey did not return a request for comment.
Days after Shaboozey sued both Warner Chappell and his former record label, the label sued him right back — accusing the breakout country star of using “fraud” and “bad faith” to avoid his existing contractual obligations in the wake of the massive success of “A Bar Song (Tipsy).”
In a complaint filed Friday (Aug. 23) in Los Angeles court, Kreshendo Entertainment claims that after it released Shaboozey (Collins Obinna Chibueze) from his record deal in 2019, the company retained key rights to his music. Rather than stick to those requirements, Kreshendo claims the star has instead “elected a strategy of fraud and misrepresentation to deprive plaintiffs of their contractual rights.”
“Notably, Shaboozey had no issue with any of these terms for years,” write the company’s attorneys, from the law firm Reed Smith. “It was only after he recently released the ‘Bar Song,’ which has become a huge hit, that he has taken sudden issue with the terms he expressly agreed to.”
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The new case was filed just two days after Shaboozey filed his own case on Wednesday (Aug. 21) against Kreshendo and Warner Chappell. In that lawsuit, Shaboozey claimed that Warner was blocking him from exiting a publishing administration deal and that it was doing so at the behest of Kreshendo even though he had terminated the label years earlier.
But in the new accusations, Kreshendo says it’s Shaboozey who’s in the wrong. The company admitted that it had released Shaboozey from his record deal in 2019 but argued that the move came with important stipulations — namely, that Kreshendo would continue to own a 50% stake in all of the singer’s compositions and retain a right to be paid a percentage of profits from his masters.
Those requirements were put in place, according to Kreshendo, to compensate the company for the support it had provided a then-undiscovered singer.
“Before Shaboozey became the well-known artist he is today, he was an unknown artist that plaintiffs believed in, and they agreed to invest their time and money to help him develop and reach success in the music industry,” the complaint reads.
The lawsuit claims that Shaboozey has repeatedly breached the termination agreement, including through failing to pay the required profits and also through the wrangling with Warner that was detailed in his own lawsuit earlier in the week. Kreshendo says Shaboozey’s statements to Warner, including directing the company to stop paying Kreshendo, have been “false” and “an attempt to circumvent his contractual obligations.”
An attorney for Shaboozey did not immediately return a request for comment from Billboard on Monday (Aug. 26). Warner Chappell, which was named as a defendant in Shaboozey’s case, is not a plaintiff in the newer lawsuit.
The dueling lawsuits come amid a breakout year for Shaboozey. “A Bar Song,” a genre-blending hit that interpolates J-KWON‘s 2004 rap hit “Tipsy” into a bouncy pop country track, has spent seven weeks at No. 1 on the Billboard Hot 100, marking the longest chart-topping stint for a song in 2024.
There’s a new front in the never-ending legal war between Joey Ramone’s brother and Johnny Ramone’s widow over control of the iconic punk band.
In a new lawsuit filed Friday (Aug. 23) in Manhattan federal court, Joey’s brother Mitchel Hyman (better known as Mickey Leigh) accused Johnny’s wife, Linda Cummings-Ramone, of violating federal trademark law by carrying out an “unrelenting quest” to associate herself with the Ramones.
As is typical of the nasty dispute between the two heirs (who each control exactly half of the band’s holding company), the lawsuit pulled no punches — calling Cummings-Ramone a former “groupie” with an “insatiable personal desire to shine a spotlight on herself.”
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“Ms. Cummings-Ramone has made and continues to make blatant attempts to exploit and personally capitalize on and benefit from the name, goodwill and legacy of the Ramones — that is, to try to push the false narrative that she is the heiress to … the Ramones’ legacy,” Leigh’s lawyers write. “She most certainly is not. She is nothing more than a blatant self-promoter and an infringer.”
Joey Ramone (Jeffrey Ross Hyman) and Johnny Ramone (John William Cummings) were not actually brothers, and they had a notoriously chilly relationship during their decades as bandmates. In the years since the two died in the 2000s, that feud has seemingly continued between Leigh and Cummings-Ramone.
As the executors of Joey’s and Johnny’s respective estates, Leigh and Cummings-Ramone each own half of Ramones Productions, the entity that controls the band’s music and other assets. But that partnership has not gone smoothly, featuring multiple lawsuits and arbitrations over the past decade.
The latest scuffle began in January, when Cummings-Ramone sued Leigh in New York state court over allegations that he had “covertly” developed an “unauthorized” biopic (believed to be Netflix’s announced Ramones movie starring Pete Davidson as Joey). In the lawsuit, Cummings-Ramone said that any “authoritative story of the Ramones” would require her sign-off: “To permit defendants alone to tell the authoritative story of the Ramones would be an injustice to the band and its legacy.”
Eight months later, with the earlier case still pending, Leigh is now on offense — claiming that Cummings-Ramone has infringed the band’s trademarks held by Ramones Productions by using them herself. His new case repeatedly takes aim at her use of the name “Linda Ramone” despite the fact that “Ramone” was not the legal surname of her late husband nor any other band member.
“Ramones are unique in many ways. One of which is that they are the only band of stature where all the members were not related but used the same last name as if they were,” Leigh’s lawyers write. “That made it easy for defendant to insert herself into the Ramones legacy as part of the family, the public spokesperson, and to associate her personal brand with Ramones, by using the name ‘Linda Ramone.’ Indeed, ‘Linda Ramone’ never existed while her husband, John Cummings was alive. Defendant increasingly adopted the name ‘Linda Ramone’ after Mr. Cummings died.”
The lawsuit claims that earlier legal proceedings and agreements have sharply restricted how Cummings-Ramone is allowed to use that name, but that she has repeatedly exceeded those limitations in her public persona because she is “unabashedly obsessed with portraying herself as the widow of Johnny Ramone” and as an “integral member” of the band.
“Ms. Cummings-Ramone presents herself to the world as ‘Linda Ramone’ and unilaterally adopts the mantle of designated Ramones spokesperson and ‘keeper of the legacy’,” Leigh’s lawyers write. “She intentionally gives the false impression that she is empowered to take the lead on, or unilaterally pursue, Ramones business.”
A representative for Cummings-Ramone did not immediately return a request for comment on Monday (Aug. 26).
A federal judge has ordered convicted pharma executive Martin Shkreli to hand over his copies of Wu-Tang Clan’s Once Upon a Time in Shaolin, rejecting his claims that he had a right to retain duplicates of the one-of-a-kind album even after he forfeited it to federal prosecutors.
Following a hearing Friday in Manhattan federal court, Judge Pamela K. Chen granted a preliminary injunction to PleasrDAO — a digital art collective that bought the album in 2021 after Shkreli was forced to forfeit it as part of his criminal case.
In addition to extending previous restrictions barring him from sharing the album, the judge ruled that Shkreli must hand over “all recordings of the Album’s contents that Defendant possesses or controls” to his own attorneys. He has until Friday to file written confirmation that he’s done so.
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By granting the motion, Judge Chen rejected Shkreli’s arguments about the copies. In court filings last month, his lawyers argued that making private copies had been legal when he owned the rare album — and that he had not been required to turn those copies over to prosecutors when he handed over the famous original CD.
Pleasr sued Shkreli in June over the potential leak of the album, accusing him of violating both their purchase agreement and the federal forfeiture order. They also accused him of violating federal trade secrets law, which protects valuable proprietary information from misappropriation.
Wu-Tang’s fabled album was recorded in secret and published just once, on a CD secured in an engraved nickel and silver box. Though the group intended the bizarre trappings as a protest against the commodification of music, Shaolin later became the ultimate commodity. In 2015, Shkreli — soon to become infamous as the man who intentionally spiked the price of crucial AIDS medications — bought it at auction for $2 million.
When it was initially sold, Shaolin came with much-discussed stipulations — namely, that the one-of-a-kind album could not be released to the general public until 2103. But Shkreli’s lawyers say the deal granted him the right to “duplicate or replicate the work for private use.”
After Shkreli was convicted of securities fraud in 2017, he forfeited the album to federal prosecutors to help pay his multi-million dollar restitution sentence. Pleasr then bought the album from the government in 2021 for $4 million, and in 2024 acquired the copyrights and other rights to the album for another $750,000.
Pleasr, which has recently been attempting to monetize the album, sued Shkreli on the grounds that had been threatening to release the album publicly and destroy the exclusivity that the company had purchased.
In a statement following Friday’s ruling, Pleasr’s attorney, Steven Cooper of the law firm Reed Smith, called the ruling “an important victory” for his client: “We are pleased that Judge Chen recognized that immediate relief was necessary to thwart the continuing bad acts of Mr. Shrkeli.”
An attorney for Shkreli did not immediately return a request for comment.
Following Friday’s ruling, the injunction against Shkreli will be in place until a final ruling is reached at the end of the case. Barring a settlement, the lawsuit will now proceed to full litigation – including discovery, dueling motions from each side, and an eventual jury trial.
OutKast has filed a trademark infringement lawsuit against an electronic dance music duo called ATLiens – the same name as one of the iconic hip hop duo’s best-known songs.
In a lawsuit lodged Tuesday in Georgia federal court, lawyers for Big Boi (Antwan Patton) and André 3000 (André Benjamin) argue that the name (a combo of “aliens” and their hometown of Atlanta) is a novel linguistic term – and that the rival group is confusing music fans by using it.
“The word ATLiens was invented by OutKast. Before OutKast created it, it was not used in the cultural lexicon and did not exist,” the group wrote. “Defendant’s use of the ATLiens mark is likely to cause confusion, to cause mistake, or to deceive the public.”
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Released in 1996, ATLiens is OutKast’s second studio album, featuring the same-name song as one of the singles from the LP. The album spent 33 weeks on the Billboard 200, while the song itself reached No. 35 on the Hot 100 and spent 17 weeks on the chart.
The track, well-received at the time, is “one of OutKast’s most well-known and well-regarded songs,” the lawsuit claims, and the duo “continues to perform ‘ATLiens’ at nearly all (if not every single one) of its full-length live performances.”
According to the group’s lawyers, the rival ATLiens started using their name in 2012 and later registered the name as a trademark. In the suit, Outkast appears to claim that they did not know about the other dance group until recently.
In accusing the EDM duo of infringement, OutKast says the two names are “identical” and used for largely the same thing – musical duos from Atlanta who perform in “related musical genres.” The lawsuit even claims that, thanks to the rival group’s stage costumes, fans might literally think they’re Big Boi and André 3000.
“The duo comprising defendant performs with masks on, thereby concealing their identities such that consumers will mistakenly believe that the members of Defendant are one and the same with – or at least somehow connected to – plaintiff,” lawyers for OutKast write.
OutKast says it attempted to “negotiate an amicable resolution to the dispute” but that ATLiens has continued to use the name in confusing ways – like a poster for an upcoming show in Atlanta that allegedly riffs on a similar poster used by OutKast.
“Management for OutKast has already received communications from third-parties querying whether OutKast was affiliated with defendant’s upcoming show,” the group’s lawyers write.
Reps for ATLiens did not immediately return a request for comment.
In technical terms, the case was filed by High Schoolers LLC, a holding company owned by Big Boi and André 3000 that controls OutKast’s trademarks.
Just a week before a court-ordered auction of Damon Dash’s one-third stake in Jay-Z’s Roc-A-Fella Records, there’s a stunning new wrinkle: New York State says he owes more than $8.7 million in unpaid taxes and that the Roc-A-Fella proceeds must be used to pay down the huge debt.
In a motion filed Wednesday in Manhattan federal court, New York’s Department of Taxation & Finance asked to legally intervene in the proceedings ahead of the Aug. 29 auction, in which the United States Marshals Service will auction off Dash’s 33.3% interest in the storied record company.
The tax authorities claim that Dash owes more than $8.7 million in unpaid taxes and penalties from personal income he reported from 2005 and 2018 – and that the Roc-A-Fella auction might be their last shot at recouping a debt that has been “delinquent for far too long.”
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“To date, the Department has been unsuccessful in its efforts to collect the unpaid New York State tax debt owed by Dash,” attorneys for the state wrote. “Intervening in this matter may be the Department’s only opportunity to collect some of the unpaid taxes Dash owes to New York.”
The new wrinkle is sure to complicate an already-complex situation. The Roc-A-Fella auction is being held to satisfy an $823,000 judgment against Dash, won by movie producer Josh Webber in a civil lawsuit over a failed film partnership. But New York City’s Department of Social Services will actually have first dibs, since Dash also owes a total of $145,096 in unpaid child support.
In their filing on Wednesday, the tax department stressed that it does not seek to jump ahead of child services in pecking order for auction proceeds. But it offered no such promise to Webber – and pointedly noted that it had secured a lien against the Roc-A-Fella proceeds more a decade earlier than he had.
Set to take place next week at a Manhattan hotel, the Roc-A-Fella auction will have a minimum bid of $1.2 million. The sale will be for Dash’s stake in Roc-A-Fella Inc., an entity whose primary asset is Jay-Z’s iconic debut album Reasonable Doubt. The rest of the catalog of music released by Roc-A-Fella, which dissolved in 2013, isn’t involved.
The owners of the other two-thirds of Roc-A-Fella — label cofounders Jay-Z (Shawn Carter) and Kareem “Biggs” Burke — have already attempted to stop the auction, including making changes to the company’s bylaws and intervening in the lawsuit. But a federal judge rejected such opposition in February.
The auction will be coordinated by Webber’s attorney, Chris Brown, who told Billboard earlier this month that he had received numerous inquiries from potential bidders, including corporate investors, high-profile individuals and collectors. Brown not immediately return a request for comment Thursday on the Department of Taxation & Finance’s request to access the proceeds.
Though the auction’s minimum bid has been set at $1.2 million, it’s entirely unclear how much a potential buyer is going to be willing to spend on Dash’s one-third stake.
The royalties from Reasonable Doubt would likely provide them a revenue stream; since its 1996 release, Reasonable Doubt has racked up 2.2 million equivalent album units in the U.S., according to Luminate, including 21,500 units so far this year. But the eventual buyer also would be a minority owner in a company controlled by hostile partners, with little ability to perform typical due diligence on the asset they’re about to purchase. And Roc-A-Fella’s rights to Reasonable Doubt will potentially expire in 2031 thanks to copyright law’s termination right, which would allow Jay-Z himself to reclaim full control.
If any money from the auction is left over, it will go to Dash himself. In a statement to Billboard last month, his attorney Natraj Bhushan said that he and his client would be at the Aug. 29 event and “expect a robust auction with bids entering the several millions if not higher.” Bhushan did not immediately return a request for comment Thursday on the Department of Taxation & Finance’s request to access the proceeds.
Beyoncé‘s record label has sent a cease-and-desist to Donald Trump‘s presidential campaign over its use of the megastar’s song “Freedom” in a social media video, according to Rolling Stone, which reports that the campaign did not have permission to use the track. In the offending clip, which was posted to Trump campaign spokesperson Steven Cheung‘s […]