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!

Tags:

Posted in: News

COMMENTS

To comment on a BLABBERMOUTH.NET story or review, you must be logged in to an active personal account on Facebook. Once you're logged in, you will be able to comment. User comments or postings do not reflect the viewpoint of BLABBERMOUTH.NET and BLABBERMOUTH.NET does not endorse, or guarantee the accuracy of, any user comment. To report spam or any abusive, obscene, defamatory, racist, homophobic or threatening comments, or anything that may violate any applicable laws, use the "Report to Facebook" and "Mark as spam" links that appear next to the comments themselves. To do so, click the downward arrow on the top-right corner of the Facebook comment (the arrow is invisible until you roll over it) and select the appropriate action. You can also send an e-mail to blabbermouthinbox(@)gmail.com with pertinent details. BLABBERMOUTH.NET reserves the right to "hide" comments that may be considered offensive, illegal or inappropriate and to "ban" users that violate the site's Terms Of Service. Hidden comments will still appear to the user and to the user's Facebook friends. If a new comment is published from a "banned" user or contains a blacklisted word, this comment will automatically have limited visibility (the "banned" user's comments will only be visible to the user and the user's Facebook friends).