Last week, former hedge-fund manager Steven Lamar filed a legal action against Dr. Dre, Jimmy Iovine and others regarding Beats Electronics, according to The Hollywood Reporter. Earlier this month, it was reported that Apple is set to purchase Beats Electronics for $3.2 billion.
They are accused of breach of contract and Lamar (Not Kendrick) is seeking as high as a four percent royalty rate for the sale of the company’s headphones among a bunch of legal jargon.
According to reports Lamar “is suing Iovine, Dre, Beats, Pentagram and H&A for breaching the terms of the settlement agreement and royalty agreement,” The Hollywood Reporter says in its story. “He’s suing the same parties for bad faith denial of contract; suing Brunner, Pentagram and H&A for breach of fiduciary duties; and suing Brunner for tortious interference for allegedly inducing Iovine/Dre/Beats to renege on their contractual obligations made eight years ago.”
It was Lamar who brought the idea to Iovine to market the headphones with celebrities. Since they are the major faces of Beats they are going to take a minor hit if they do loose, but its the company and technology behind everything that is really being contested. Hopefully this doesn’t mess up the Apple deal!