Venture capitalist Ron Goldberg officially filed suit on Tuesday (September 30) against several former business partners, alleging they conspired with new Death Row owners Global Music Group to cut him out of the winning June $24 million dollar bid.
In the lawsuit, Goldberg claims that several investors he recruited, including the financing institution MicroBanc, LLC, conspired with other “unknown parties” to close the deal without his knowledge.
Death Row’s valuable back catalogue went to auction this past summer due to founder Suge Knight filing Chapter 11 bankruptcy protection in 2006.
Knight’s bankruptcy was primarily the result of losing a $100 million dollar lawsuit to Lydia Harris, who successfully argued she and her husband financed the company’s 1991 launch.
In August, Mediatechnics Corporation, the parent company of three subsidiary Corporations, each with their own professional management team with extensive backgrounds in finance, manufacturing, marketing and distribution, merged with Global Music Group, to provide them with the funds needed to complete the acquisition.
Still, with a new roster that includes former Atlantic Records singer Mark Morrison, the hotly contested acquisition is considered a major win for Global Music Group and Anthony Marotta, the company's President.
Global Music Group retain the rights to Death Row Records entire back catalogue of albums, videos, and unreleased tracks from Dr. Dre, Tupac Shakur, Tha Dogg Pound, The Lady of Rage, and others.
To date, the fallen label giant has sold close to 50 million records worldwide and generated over $750 million in revenue.
Source: news.absolutely.net/2008
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