Beats Electronics and its previous business partner are embroiled in a legal dispute. In short the dispute revolves around a messy split in 2012.
Monster LLC and the company’s founder are suing Beats on the allegation that Beats misled it with regards to its long term plans. It is claimed that this caused Noel Lee, Monster’s founder, to sell his share of Beats in 2013. Obviously the sale in 2013 was for a lot less money than had Noel Lee sold his share after the $3 billion Apple deal in 2014.
Beats went on to be victorious in that battle, Beats also won a second court battle that revolved around who was to pay whose legal fees.
Back in court, Beats is now claiming that Monster owes $95 million on the basis of its previous distribution agreement. On the other hand, Monster is counterclaiming a sum of $100 million from Beats because of the parties termination agreement and because the distribution agreement was breached by Beats.
An audit that stated Beats was owed $95 million, carried out by PricewaterhouseCoppers, is the key theme of the litigation.
Beats went on to attempt to have the case dismissed on the basis that Monsters claim was not pursuable on the basis of the statute of limitations. Monster went onto argue that the audit had determined that Monster was owed $2 million but then after Beats allegedly persuaded PricewaterhouseCoppers to change its mind and increase that to $95 million.
This week the judge hearing the case has ruled that due to the complexities of the case and the various agreements the case will not be dismissed. The monstrous battle will continue.
