At least one company has a beef with Dr. Dre and Jimmy Iovine. Monster has sued the Beats By Dre founders for fraud, alleging that a former business partner of the headphone makers got scammed out of millions.
Reports Page Six:
The complaint filed Tuesday in San Mateo Superior Court accuses Dre and Iovine of double crossing Noel Lee, the founder of video and audio cable maker Monster LLC.
Lee once held a 5 percent stake in Beats as part of a partnership between the headphone maker and Monster that ended in 2012. The lawsuit alleges Dre and Iovine orchestrated a “sham” deal with smartphone maker HTC in 2011 that led to the termination of the Monster alliance.
The suit alleges the shady maneuvering prompted Lee to pare his stake in Beats to 1.25 percent before selling his remaining holdings for $5.5 million in the autumn of 2013 after being assured by Beats executives that there were no plans to sell the company for at least several years.
We’re thinking this one might get settled out of court sooner than later.