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MEGADETH's DAVE MUSTAINE Files Counter Lawsuit Against DAVID ELLEFSON

August 6, 2004

Billboard.biz is reporting that MEGADETH mainman Dave Mustaine has filed a counter lawsuit against former MEGADETH bassist David Ellefson alleging that Ellefson on May 14 executed a settlement agreement in which he gave up his 20% interest in MEGADETH. Mustaine maintains that the settlement — which Ellefson alleges was signed under pressure and ultimately withdrawn — released Mustaine from all claims.

Mustaine's suit, which seeks damages to be determined, was filed in response to Ellefson's original action, filed July 12 in U.S. District Court for the Southern District of New York, which alleges that co-founding guitarist David Mustaine breached their long-running partnership agreement. He claims Mustaine wrongfully took the lion's share of the band's gross income (estimated at more than $200 million since 1984) for himself and cut Ellefson out of the band's music publishing and merchandise revenues.

Ellefson also says that Mustaine libeled him in an online posting. The bassist is seeking at least $18.5 million in damages.

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