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New York Judge Reverses Decision to Let Drake’s First Label Sue Universal Music Group for Profit Claims

Posted on February 8th, 2019
by
Staff Editor


According to Complex, a New York judge has changed his mind on allowing Drake’s origional label to sue Universal Music Group for album profits.

Aspire Music Group, a label co-founded by Lil Wayne’s former manager Cortez Bryant, filed a lawsuit against Cash Money Records and UMG Recordings, claiming that both labels were “cheating a deal that entitled Aspire to one-third of net profits from Drake’s first six solo albums.”

In July 2018, New York Supreme Court Judge Barry Ostrager permitted the lawsuit to move forward after he dismissed the argument that Aspire “waited too long to fight against accounting statements,” as Complex stated.

The judge also rejected the idea that Universal could be held accountable for a lawful violation as an “alter ego” of Cash Money.

“Even assuming Universal was an ‘equitable owner’ of Cash Money, the complaint fails to allege that Universal’s domination of Cash Money was used to commit a wrong against plaintiff,” the appellate opinion said. “The complaint essentially alleges that Universal took advantage of Cash Money’s cash flow problems by helping to satisfy millions of dollars of Cash Money’s debts in exchange for control of Cash Money, and then, through such control, paid itself higher distribution fees, thereby reducing the net profits that plaintiff was entitled to receive under the Aspire/YME Agreement.”

The panel of appellate justices the said that, “These allegations describe legitimate business conduct; there is no indication that Universal engaged in this conduct for the purpose of harming plaintiff.”

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