Finance & Markets

Lawsuit: Lamar To Receive $25.2M As Royalty From Dr. Dre And Iovine

As per associated press release, the jury made a decision against Dr. Dre and Jimmy Iovine, Co-founder, Beats Electronics, in a lawsuit. As per the Blast, following the loss of lawsuit cost Iovine and Dre to pay approximately $25M to Steven Lamar, their former business partner.

Lamar registered a lawsuit against their partner in 2014 and looking for get $100M in royalty. A jury has dismissed the claim, which was then re-appealed in 2016 and was in a trial earlier this month.

As per The Hollywood Reporter, “The filed lawsuit, Steven claimed that he visited Dre in 2006m, with an idea for headphones endorsed by celebrities. To this, Iovine and Dre put their statement that Lamas was only authorized to take royalties from the first ever model of headphone.”

After all the argument, the jury finally comes to a decision that Lamar owed royalties of 3 headphones models which has The Studio 2 Wireless and Remastered and the Studio 3, which make him have $25.2M as a royalty.

Melton was also positive that Lamar was more credible witness compared to Iovine, who made a point at the time of testimony that he had made a deal just for the royalty of one-product, but the jury panel has found that what he said was not the thing which is clearly stipulated in the contract between them.

Along with this, he made a point that the claim made by Iovine are false and not followed by, as Beats Electronics failed to even pay Lamar the full price of the first generation of headphone, a matter that was settled before the trial, but came up and shed more light on the case.

In here and all during the case, Dre and Iovine were playing the celebrity card and hoping that they will attain a jail free for them with this, which did not happen, and they ended up paying Lamar a huge amount of $25.2M as royalty, says Melton.

Arpit Mehta

Arpit is a well ripened fruit in the field of finance and markets. When it comes to numbers, nobody can catch this guy’s hand. Needless to say that he does not require a calculator, he himself is the calculator for the Market Global News’ team. In his free time, you will find him grabbing a cup of coffee with his friends.

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