Now, comes the matter of Sleek Audio versus Curtis James Jackson, III.
In 2011, 50 Cent partnered with Bradenton, Florida based, Sleek Audio to create and market a headphones product, to be named Sleek by 50.
50 Cent invested $2 million dollars into the project.
The partnership became acrimonious and 50 Cent decided to develop, on his own, a headphones product called Street by 50, under the brand to be named SMS Audio.
Sleek Audio brought legal action against 50 Cent, for “misappropriating trade secrets, breaching his fiduciary duty to Sleek, participating in a civil conspiracy, breaching his fiduciary duty to Sleek, and being unjustly enriched”.
An Arbitrator decided the matter between Sleek Audio and 50 Cent. The Arbitrator found in favor of Sleek Audio, and determined that 50 Cent be ordered to pay $11,693,247 in Damages and an additional $4,488,331 in Attorney Fees.
Reported in the Business Insider on October 7, 2015; according to 50 Cent, as represented through his Attorneys:
Sleek missed its launch deadline and never ended up marketing the headphones. The rapper decided to form his own company, SMS Audio, to launch the headphones, and he claims his lawyers at Garvey Schubert Barer assured him he wouldn’t be infringing on intellectual property rights held by Sleek.
50 Cent is seeking an Award for Damages against Garvey Schubert Barer, claiming that his prior Attorneys committed Malpractice in their representation of him.
Craig Weiner, at Robins Kaplan, and one of 50 Cent’s Bankruptcy Attorneys:
“Mr. Jackson’s decision to file this action came only after it was determined that a settlement could not be reached between the parties”.
The Law Firm of Garvey Schubert Barer made a Statement regarding the controversy:
“We understand that Mr. Jackson is disappointed in the outcome of Sleek Audio’s arbitration against him. However, Mr. Jackson’s complaint against Garvey Schubert Barer omits a number of relevant facts and misstates a number of others, and we will respond to the allegations in accordance with the court’s rules”.
“Our attorneys properly counseled Mr. Jackson and his sophisticated team of financial and operational advisors about the transactions and the arbitrations with Sleek”.
The information presented above is only a brief description of the controversy between 50 Cent and Sleek Audio, which began with a devolution of a partnership, segued into an Arbitration Award against Mr. Jackson, and continued in the Bankruptcy Court. Because this portion of the Article on the 50 Cent-Sleek Audio controversy is based upon information the author gathered from Articles presented through various mainstream media, tabloid, and other similar publications, the author was forced to discard much information that later may prove to be misleading or false.
The later Articles in this Series on the Bankruptcy of Curtis Jackson will explain the Sleek Audio controversy in greater detail, along with involved commentary on the legal strategies and laws relating to the headphones imbroglio.
Image credit: Wikien2009 (Wikipedia)