SANCTUARY RECORDS Sued For $50 Million

Los Angeles, California-based 5.1 Entertainment Group has filed a $50 million lawsuit against the Sanctuary Records Group, charging that Sanctuary, owner of the world's largest independent recorded music catalog, breached the terms of a September 29, 2003, amendment to the original agreement between the parties that provided for delivery by Sanctuary to 5.1 of up to 220 albums, at least 140 for release in DualDisc configuration. To date, Sanctuary has failed and refused to deliver to 5.1 for release on DualDiscs, the main purpose of the amendment, any of the top-line albums in its catalog, including those of BLACK SABBATH, ROBERT PLANT, JOURNEY, ALISON MOYET, MORRISEY, MEAT LOAF, EMERSON LAKE AND PALMER and ERIC CLAPTON, among others. Sanctuary is also engaged in the business of artist management, representing such acts as SLAYER, SLIPKNOT, IRON MAIDEN, GUNS N' ROSES, Sir Elton John and Beyonce. In an amended complaint, 5.1 also alleges that Sanctuary committed fraud by making promises to deliver albums it did not intend to deliver to induce 5.1 to enter into the amendment prior to the end of September, 2003, "for the purpose of inflating its financial performance for its fiscal year ended September 30, 2003." 5.1 asserts that "Sanctuary, for its own financial reasons, including but not limited to the reporting of its financial results and/or conditions to its shareholders, intentionally defrauded" 5.1 by making the promises and representations set forth in the complaint.

Read the entire press release at Yahoo!


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