JAY-Z has put his former business partner on notice. He and his team are alleging that their brand management firm cooked their books.
According to a report by Billboard Roc Nation has filed a lawsuit against Iconix Brand Group Inc. for reportedly misappropriating finances in relation to their apparel entities. In March 2007 Carter sold the rights for Rocawear to IBG for $204 million. He further engaged the firm in 2013 when Roc Nation entered a contract for additional licensing initiatives.
Their filing alleges that since then the firm inflated their earnings thus falsifying the company’s stability and value. The suit states that conspiracy to defraud comes “out 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”. The purported scheme “sent its share price from a peak of more than $400 per share in 2014, to less than a dollar today”.
In 2018 JAY-Z was questioned by the Securities and Exchange Commission relating to the fraud allegations but his legal team stated he didn’t have any relevant details regarding the suit. Roc Nation is looking for unspecified monetary damages and reimbursement of all legal fees incurred.