Def Jam Facing $30 Million Lawsuit Over Murder Inc
...........................
The drama for Def Jam and Murder Inc doesn't seem to be subsiding
anytime soon. Record label TVT Records has filed a $30 million lawsuit
against Def Jam Records and its CEO, Lyor Cohen and this week a federal jury
has found the company liable for fraud and copyright infringement.
The suit, originally filed in August, stems from Def Jam blocking
the release of the Cash Money Click album, which features Ja Rule and
Irv Gotti, that was set to drop on TVT Records. In 1994, Ja Rule signed
a contract as part of the Cash Money Click with TVT Records and was
planning to honor his contract with the label as part of the group in
2002. The suit said that Ja and Gotti received permission from Lyor Cohen
to do the project, and TVT gave a $400,000 advance to the group to begin
work on the album. In addition, the suit claims that TVT and Def Jam
hammered out a side letter that said that Def Jam would be able to
receive a cut of the album profits. Based on this deal, TVT spent thousands
of dollars in producing 11 songs for the Cash Money Click project.
The problem began last summer when Def Jam used of one the songs from
the Click project, "The Rain" on the album, Irv Gotti Presents The Inc.
without TVT's permission. In addition, the suit claims that in August
2002 Def Jam rejected the terms of the side letter that they had agreed
on for the Cash Money Click project. Also mentioned in the hearings is
the inconsistency in Lyor Cohen's testimony. In court documents, Lyor
stated that he would not allow Irv Gotti to participate in the TVT
project, however, on the stand in court, Cohen said that he didn't remember
telling Gotti that he couldn't take part in the project.
"The evidence was overwhelming," Peter Haviland, a lawyer for TVT, told
the L.A. Times. "The verdict against Mr. Cohen, personally, for fraud
shows that there are some very serious problems confronting Def Jam and
Universal Music Group."
Def Jam says it has plans to appeal the court decision and produce more
evidence in their defense. The jury will consider the damages of $30
million on April 28.
This decision comes after problems continue to rise for Def Jam and its
relationship with Murder Inc Records. Murder Inc Records abruptly moved
out Def Jam offices last Friday due to undisclosed circumstances.
Sources close to the label told SOHH.com exclusively that employees of
Murder Inc were told to pack up their desks as they were being kicked out of
the building due to FBI investigations. However, Lyor Cohen rebutted
these claims stating that Murder Inc's move was due to their need for
more space for its expanding film division, producer division, etc.
Critics say that Lyor Cohen's statement on Murder Inc's move is an obvious
"damage control" tactic to maintain the image of Def Jam Records and the
public's view of its relationship with Murder Inc.
...........................
The drama for Def Jam and Murder Inc doesn't seem to be subsiding
anytime soon. Record label TVT Records has filed a $30 million lawsuit
against Def Jam Records and its CEO, Lyor Cohen and this week a federal jury
has found the company liable for fraud and copyright infringement.
The suit, originally filed in August, stems from Def Jam blocking
the release of the Cash Money Click album, which features Ja Rule and
Irv Gotti, that was set to drop on TVT Records. In 1994, Ja Rule signed
a contract as part of the Cash Money Click with TVT Records and was
planning to honor his contract with the label as part of the group in
2002. The suit said that Ja and Gotti received permission from Lyor Cohen
to do the project, and TVT gave a $400,000 advance to the group to begin
work on the album. In addition, the suit claims that TVT and Def Jam
hammered out a side letter that said that Def Jam would be able to
receive a cut of the album profits. Based on this deal, TVT spent thousands
of dollars in producing 11 songs for the Cash Money Click project.
The problem began last summer when Def Jam used of one the songs from
the Click project, "The Rain" on the album, Irv Gotti Presents The Inc.
without TVT's permission. In addition, the suit claims that in August
2002 Def Jam rejected the terms of the side letter that they had agreed
on for the Cash Money Click project. Also mentioned in the hearings is
the inconsistency in Lyor Cohen's testimony. In court documents, Lyor
stated that he would not allow Irv Gotti to participate in the TVT
project, however, on the stand in court, Cohen said that he didn't remember
telling Gotti that he couldn't take part in the project.
"The evidence was overwhelming," Peter Haviland, a lawyer for TVT, told
the L.A. Times. "The verdict against Mr. Cohen, personally, for fraud
shows that there are some very serious problems confronting Def Jam and
Universal Music Group."
Def Jam says it has plans to appeal the court decision and produce more
evidence in their defense. The jury will consider the damages of $30
million on April 28.
This decision comes after problems continue to rise for Def Jam and its
relationship with Murder Inc Records. Murder Inc Records abruptly moved
out Def Jam offices last Friday due to undisclosed circumstances.
Sources close to the label told SOHH.com exclusively that employees of
Murder Inc were told to pack up their desks as they were being kicked out of
the building due to FBI investigations. However, Lyor Cohen rebutted
these claims stating that Murder Inc's move was due to their need for
more space for its expanding film division, producer division, etc.
Critics say that Lyor Cohen's statement on Murder Inc's move is an obvious
"damage control" tactic to maintain the image of Def Jam Records and the
public's view of its relationship with Murder Inc.
