Judge tosses key claims in Monster lawsuit against Beats
Los Angeles Superior Court Judge William Fahey handed down a summary judgment dismissing claims that Monster and its CEO Noel Lee were duped out of a 5 percent share of the Beats by Dre brand, a move orchestrated through Beats' "sham" sale to HTC, the Associated Press reports.
Leveled early last year, the lawsuit asserts Iovine and Dre, whose real name is Andre Young, obfuscated the design, manufacturing and marketing contributions Monster and Lee put in to the Beats by Dre headphone lineup when the brand was sold to HTC for $300 million in 2011. The sale triggered a change of control clause that allowed Beats to completely sever ties with Monster.
Shortly after Monster was out of the picture, Iovine and Dre repurchased a 25.5 percent share in Beats as Lee drew down his stake to 1.25 percent. The lawsuit alleges misrepresentations about Beats' future plans ultimately prompted Lee to relinquished his remaining stake in the company in 2013 for a $5.5 million.
