Jay-Z Accuses Licensing Company of “Colossal Accounting Fraud” in New Lawsuit
Jay-Z is protecting his billion-dollar fortune from a company he claims used fraud to land a major with him.
On Friday (July 5), The Associated Press reported Hov's business entities filed a suit against Iconix Brand Group Inc. The suit, which was filed Thursday (July 4) in a Manhattan state court, claims the company provided fraudulent finance reports when landing a deal with the rap mogul's Roc Nation apparel company in 2013.
The suit claims the current legal action is the result of “a massive years-long fraud perpetrated by Iconix and its affiliates to amass a portfolio of trademarks under false pretenses, in the process defrauding its licensees and partners, and setting off a colossal accounting scandal the depths of which are still being uncovered.”
It also claims the plot had a major affect on the company's stock prices and “sent its share price from a peak of more than $400 per share in 2014, to less than a dollar today.”
Last May, Jigga was subpoenaed by the Securities and Exchange Commission in connection with the fraud allegations. Jay-Z previously sold assets to his Rocawear clothing company to the Iconix Brand Group for $204 million. This isn't the first time Jay has had legal issues with IBG. They sued the rapper in 2017 for putting his company's logo on MLB merchandise, which they claimed they owned because of the sale. He later asked that his name be removed from the lawsuit.
The new suit against IBG on Jay's behalf also claims the rapper's companies “have incurred substantial legal expenses in connection with, among other things, the federal government’s investigations into Iconix’s massive fraud.”
He is seeking payment of legal fees and unspecified damages.
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