News: Jay-Z Files $3.7 Million Lawsuit Over His "Empire State" Hotel Deal
Thursday, Feb 4, 2010 5:30PM
Rap mogul Shawn "Jay-Z" Carter has reportedly filed a $3.7 million lawsuit against an investment firm regarding a 2007 loan for a New York City hotel.
According to reports, Jay is seeking legal action against Highland Capital Management.
Carter says that when the value of the property fell, he attempted to return it to Highland to avoid repossession, and that the company's subsequent unresponsiveness cost him millions; the lawsuit seeks $3.7 million in damages. The lawsuit also claims that Highland improperly diverted funds meant from a reserve account. Highland says his claims are "meritless," and that the loan remains in default. (Entertainment Weekly)
Speaking in its own defense, the investment firm said it is unfazed by the rapper's position.
Calling Jay-Z's claims "meritless," Highland says it "will vigorously defend itself" and pursue obligations owed to investors. The investment firm says Jay-Z's loan matured last August and is currently in default. (Black Book Mag)
A statement from Jay's attorneys has also been released.
"This action arises out of the efforts by defendants to bleed additional funds from the plaintiff," the rapper's lawyers stated in legal documents. "Defendants embarked on a bad faith course of conduct." (BBC News)
Aside from the legal matter, Jay-Z and his wife/singer, Beyonce Knowles, were recently named the top earning couple in entertainment.
Music duo Jay-Z and Beyoncé Knowles earned $122 million between June 2008 and June 2009, landing them atop the publication's annual Top-Earning Couples list in Hollywood for the second year in a row. The couple married quietly in 2008 and are responsible for everything from music ("Single Ladies" and "Empire State of Mind") to clothing lines, worldwide tours, and product endorsements (like American Express and Budweiser). (Billboard)
No further details have been revealed as of now.