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“Dr. Dre and Jimmy Lovine Screwed Me in Beats Deal” : Monster CEO Claims in Lawsuit

January 7, 2015  |  Posted by: Giovanni DePhillips
“Dr. Dre and Jimmy Lovine Screwed Me in Beats Deal” : Monster CEO Claims in Lawsuit Image courtesy of musique.jeuxactu.com

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The CEO of technology firm Monster is suing co-founders Dr. Dre and Jimmy Iovine of Beats Electronics claiming they screwed him before selling the headphone company to Apple for $3billion.

The suit, which was filed in a California court on Tuesday by Noel Lee, who also co founded Beats, alleges that legendary hip hop producer Dr. Dre and record executive Mr. Iovine duped him in the lucrative deal.

Image courtesy of gopixpic.com

Image courtesy of gopixpic.com

Lee had a 5 percent stake in Beats during their Monster-Beats partnership that ended in 2012, now the CEO claims the pair deliberately planned a ‘screw job’ deal with smartphone developer HTC in 2011.

The deal, Lee claims led to the Monster-Beats partnership ending. He paired his stake in Beats to 1.25 per cent before selling his remaining shares for $5.5 million in 2013.

During that time, Lee was assured by Beats that they had no intention of selling the company for at least several years, the lawsuit states. However to Lee’s surprise, once Dr. Dre and Iovine completed their slick business move, Beatz announced its acquisition to Apple last May, where both became executives as part of the deal.

If Lee kept his 1.25 percent, his shares would have saw him receive more than $30 million in the Apple deal and his original 5 percent equity would have been worth around $150 million.

The biggest winners in the Apple deal were both Dr. Dre, whose real name is Andre Young, and Mr. Iovine, both owning 15% shares in the deal, even though the exact number has not been revealed.

Also included in the lawsuit are HTC America Holding Ltd, a Beats investor and board member Paul Wachter.

Apple Inc, who now has Dre and Iovine as part of their team, declined to comment on the lawsuit, however they are not included in the lawsuit.
The suit contradicts Lee’s statement at the time of the split, when he described the parting as very “amicable” and he was paid generously in royalties.

Lee is suing to recover money believed to be lost through the alleged misconduct of Dr. Dre and Mr. Iovine.

He also describes himself as the brains behind Beats By Dre headphones and paints both Dr. Dre and Mr. Iovine as figureheads.

From The Daily Mail

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