James Brown Estate, Primary Wave Sued Over Catalog Sale – Billboard

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Main Wave and the property of James Brown are dealing with a brand new lawsuit that claims their $90 million catalog sale final 12 months violated an settlement that the long-lasting singer had struck a long time earlier with one other firm.

Announced in December, the sale noticed Main Wave scoop up a portion of Brown’s publishing rights, grasp royalty earnings and identify/likeness rights from the singer’s property – including the “Soul Brother No. 1” to the likes of Whitney Houston and Prince within the firm’s rising catalog.

However in a brand new lawsuit filed Tuesday (Nov. 15) in Manhattan federal courtroom, David Pullman’s Pullman Group says the blockbuster sale represents a breach of a contract it struck with Brown manner again in 1999 that assured the corporate the appropriate to dealer any such deal sooner or later.

And Pullman says the breach was no small error: It’s demanding greater than $11 million in damages from the Brown property, and a whopping $125 million from Main Wave.

“The Main Wave transaction violated The Pullman Group’s unique rights below the unique engagement letter to rearrange such asset gross sales for Brown and his property,” Pullman’s legal professionals wrote of their criticism.

In response to the allegations, a rep for the Brown property advised Billboard on Wednesday that the lawsuit “has no benefit and the Property and Belief intend to vigorously defend the motion.” A rep for Main Wave didn’t instantly return a request for remark.

Pullman is greatest recognized for creating so-called Bowie Bonds – a novel monetary car that provided traders the appropriate to gather future royalties in return for a lump cost to an artist. He pioneered the association with a $55 million take care of David Bowie in 1997, therefore the identify.

Within the new lawsuit, Pullman Group says it created such a bond providing for Brown in 1999 to assist the late singer take care of “monetary difficulties,” which had been spurred by his “spending habits and authorized issues.” Beneath the phrases of the deal, Brown obtained an up-front cost of $26 million in change for future royalties over a set time frame.

However crucially, Pullman’s lawsuit says the deal additionally assured the corporate “unique rights to rearrange all future refinancing or asset gross sales of Brown’s belongings.” It says the that contractual sweetener was included as a result of the deal was dangerous for Pullman and the corporate had already agreed to waive its regular up-front charges in Brown’s case.

However in December 2021, Pullman says it discovered from media experiences that Brown’s property had reached a take care of Main Wave. The settlement had been struck “secretly and behind The Pullman Group’s again,” and the property had as an alternative used an organization known as Shot Tower Capital to rearrange the deal.

“By working for years in secret on the Main Wave transaction, Main Wave and Shot Tower Capital deliberately and maliciously interfered with The Pullman Group’s unique contractual rights,” the corporate’s legal professionals wrote.

The lawsuit says Pullman would have been entitled to a 12.5% price from any rights deal struck by Brown’s property – which means the property owes the corporate $11.3 million from Main Wave’s $90 million cost.

Pullman needs far steeper damages from Main Wave and Shot Tower Capital. Accusing them of so-called tortious interference with a contract – which means an out of doors social gathering basically induced somebody to interrupt their phrase – Pullman is looking for a minimum of $125 million in damages from every firm.

A rep for Shot Tower Capital didn’t instantly return a request for touch upon the lawsuit’s accusations.

In an announcement to Billboard, David Pullman mentioned he and Brown had a “nice mutually profitable and useful relationship and friendship for years,” however that the present authorized dispute had been brought on by these working his property.

Learn your complete lawsuit right here:





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