Courthouse Steps

CASE CAPTION: Global Icons LLC v. Bear Stearns & Co. Inc. and Lisbeth Barron, L.A. Superior Court # BC364745.

CAUSES OF ACTION: Breach of fiduciary duty; constructive fraud; and unjust enrichment.

COMPLAINT ALLEGATIONS: The plaintiff is a leading company in the field of licensing and merchandising corporate brands and entertainment properties. Barron is a senior managing director at Bear Stearns, an investment banker. In March 2004, the plaintiff was presented with an opportunity to acquire Elvis Presley Enterprises (EPE), the company that controls the intellectual property rights for the Elvis Presley estate. Global began to actively pursue the acquisition and disclosed the opportunity to Barron. The fact that EPE was potentially on the market was highly confidential. Barron recommended discussing the investment with Robert F.X. Sillerman. She also executed a confidentiality agreement acknowledging Bear Stearns as a 'representative of Global Icons.' Barron was authorized to disclose the possible acquisition to Sillerman as a possible investor. After discussions, Global agreed to relinquish the right to acquire EPE to Sillerman, cease efforts to raise financing, and assist Sillerman in acquiring it. In exchange, Sillerman agreed to grant Global the right to control the licensing and merchandising operations. Sillerman acquired EPE with financing arranged by the defendants but breached his agreement with Global. The defendants knew Global wouldn't be granted the licensing rights and ignored their fiduciary duties to Global. The defendants got millions of dollars for introducing Sillerman to the transaction and Global got frozen out.

RELIEF SOUGHT: Unspecified damages.

PLAINTIFF'S COUNSEL: Ellyn S. Garofalo and Edward A. Klein of L.A.'s Liner, Yankelevitz, Sunshine & Regenstreif (310-500-3500).

CASE CAPTION: Glenn Wheatley, Gerard Bartelkamp, Days on the Road Pty Ltd., formerly known as the Little River Band Pty Ltd. v. Capitol Records Inc. and EMI Music North America, L.A. Superior Court # BC364166.

CAUSES OF ACTION: Breach of contract; breach of implied covenant of good faith and fair dealing; fraud; aiding and abetting fraud; violations of Calif. Business & Professions Code Sec. 17200 et seq.; constructive trust; and accounting.

COMPLAINT ALLEGATIONS: The plaintiffs were in a group called Little River Band. They performed on well over 100 songs on 15 albums for the defendants. EMI uses a so-called 'Unmatched Earnings Database' in a fashion that violates its duties to the plaintiffs. Monies that aren't allocated by EMI/Capitol to particular recordings aren't reported or paid to any royalty recipient, even though the royalties are owed the artists. EMI is supposed to pay royalties within six months of receiving money. Instead, it only pays if and when EMI allocates the product units represented by the monies received to the artist. Monies frequently stay in an unallocated database for years. EMI doesn't make reasonable efforts to clear unmatched accounts. This allows it to willfully underreport royalties. The defendants also used an incorrect royalty rate on a 'Greatest Hits' release.

RELIEF SOUGHT: Unspecified damages, an accounting and injunctive relief.

PLAINTIFFS' COUNSEL: Anthony Kornarens of Santa Monica, CA (310-458-6580).

CASE CAPTION: Global Icons LLC v. Bear Stearns & Co. Inc. and Lisbeth Barron, L.A. Superior Court # BC364745.

CAUSES OF ACTION: Breach of fiduciary duty; constructive fraud; and unjust enrichment.

COMPLAINT ALLEGATIONS: The plaintiff is a leading company in the field of licensing and merchandising corporate brands and entertainment properties. Barron is a senior managing director at Bear Stearns, an investment banker. In March 2004, the plaintiff was presented with an opportunity to acquire Elvis Presley Enterprises (EPE), the company that controls the intellectual property rights for the Elvis Presley estate. Global began to actively pursue the acquisition and disclosed the opportunity to Barron. The fact that EPE was potentially on the market was highly confidential. Barron recommended discussing the investment with Robert F.X. Sillerman. She also executed a confidentiality agreement acknowledging Bear Stearns as a 'representative of Global Icons.' Barron was authorized to disclose the possible acquisition to Sillerman as a possible investor. After discussions, Global agreed to relinquish the right to acquire EPE to Sillerman, cease efforts to raise financing, and assist Sillerman in acquiring it. In exchange, Sillerman agreed to grant Global the right to control the licensing and merchandising operations. Sillerman acquired EPE with financing arranged by the defendants but breached his agreement with Global. The defendants knew Global wouldn't be granted the licensing rights and ignored their fiduciary duties to Global. The defendants got millions of dollars for introducing Sillerman to the transaction and Global got frozen out.

RELIEF SOUGHT: Unspecified damages.

PLAINTIFF'S COUNSEL: Ellyn S. Garofalo and Edward A. Klein of L.A.'s Liner, Yankelevitz, Sunshine & Regenstreif (310-500-3500).

CASE CAPTION: Glenn Wheatley, Gerard Bartelkamp, Days on the Road Pty Ltd., formerly known as the Little River Band Pty Ltd. v. Capitol Records Inc. and EMI Music North America, L.A. Superior Court # BC364166.

CAUSES OF ACTION: Breach of contract; breach of implied covenant of good faith and fair dealing; fraud; aiding and abetting fraud; violations of Calif. Business & Professions Code Sec. 17200 et seq.; constructive trust; and accounting.

COMPLAINT ALLEGATIONS: The plaintiffs were in a group called Little River Band. They performed on well over 100 songs on 15 albums for the defendants. EMI uses a so-called 'Unmatched Earnings Database' in a fashion that violates its duties to the plaintiffs. Monies that aren't allocated by EMI/Capitol to particular recordings aren't reported or paid to any royalty recipient, even though the royalties are owed the artists. EMI is supposed to pay royalties within six months of receiving money. Instead, it only pays if and when EMI allocates the product units represented by the monies received to the artist. Monies frequently stay in an unallocated database for years. EMI doesn't make reasonable efforts to clear unmatched accounts. This allows it to willfully underreport royalties. The defendants also used an incorrect royalty rate on a 'Greatest Hits' release.

RELIEF SOUGHT: Unspecified damages, an accounting and injunctive relief.

PLAINTIFFS' COUNSEL: Anthony Kornarens of Santa Monica, CA (310-458-6580).