Roc Nation, Jay-z’s record label, has filed a lawsuit against Iconix Brand Group, a city licensing company, on claim of defrauding investors.
According to a new lawsuit sighted by Page Six, the firm enticed Roc Nation alongside other companies into doing business with it by lying about its finances.
The litigation, filed at the Manhattan supreme court, also purported that Iconix was able to “amass a portfolio of trademarks under false pretenses” to actualize its “massive years-long fraud.”
Following this, Iconix then “absconded with its licensees’ money without providing the branding and retail support it promised.”
“Plaintiffs never would have entangled their business interests with Iconix had it disclosed the true condition of its business or the massive accounting fraud in which it was engaged,” the court documents read in part.
Other firms affected in the alleged scandal include including Ecko, Ed Hardy, and PONY.
Although the licensing company is yet to make any official statement with regards to the claims, Roc Nation has charged Iconix to pay the legal cost incurred and compensate it for other unspecified damages.
Jay Z had repeatedly evaded the Securities and Exchange Commission’s (SEC) requests to testify against Iconix but was forced to do so after Paul Gardephe, Manhattan federal judge, ordered the hip-hop mogul to appear in court.
“This has been delayed for five months, and I do not intend to tolerate further delay,” Gardephe said at the hearing.
“There is ample basis for the SEC to investigate the company’s accounting treatment of brand assets, including Rocawear.”
