Despite a high profile acquisition of Death Row Records by Global Music Group, the legal woes for the former Hip-Hop giant continues, as venture capitalist Ron Goldberg is suing the new owners for $25 million.
Goldberg alleged in Superior Court that the investors he recruited for the acquisition conspired with Global Music Group president Anthony Marotta and closed the deal without his knowledge.
He also names Susan Berg and Reggie Bush of RSB Investment Strategies as parties he recruited for the deal. Global Music Group acquired Death Row Records for $24 million just weeks ago, on June 24.
Goldberg further claims that the investors and Marotta used “confidential know-how, data, techniques, and contacts” that Goldberg himself had polished and refined for the deal. Death Row Records was founded in 1991 by Dr. Dre and Marion “Suge” Knight.
At its peak in 1995, the label was home to Tupac, Snoop Dogg, Tha Dogg Pound, The Lady of Rage, DJ Quik and many other West Coast stars.
Following the untimely death of Tupac Shakur in 1996 and the subsequent departures of Dr. Dre and Snoop Dogg, the label began a tumultuous decline behind unpaid royalties, inaccurate accounting practices, and Suge Knight’s periodic incarcerations.
Knight filed for Chapter 11 bankruptcy protection in April 2006, after losing a $100 million lawsuit to Death Row’s contested silent partners, Lydia and Michael “Harry-O” Harris.
Global Music Group’s $24 million acquisition gives the company all of Death Row’s assets, including its masters.