Beats Electronics, Being Close to Making the Deal with the Apple, is Accused of Fraud

The Beats Electronics, which is rumored to be on the verge of the deal of its merger with the Apple priced at $3.2 billion, will soon be taken before the court in connection with the charges in fraud by a former employee David Hyman.

David is the founder a subscription based music service named MOG Inc, acquired by the Beats in 2012. He filed a lawsuit to the Superior Court of Los Angeles, accusing the Beats in deliberate breach of the contract which entailed financial damage to him. According to Hyman, he was deliberately fired from Beats in less than a year after the service purchase to deprive him of the shares in the amount of 2.5% of the ownership fund. The share in the authorized capital would be owed to him under the terms of the contract, if the market value of the Beats Electronics exceeds $500 million.

According to Hyman in connection with a breach of the contract he was impaired in the amount of $20 million, which has to be compensated. It should be noted that Hyman did not specify the names of the rapper Dr. Dre and the legendary music producer Jimmy Iovine in the lawsuit, who are the founders of the Beats Electronics.

Source: 3dnews.ru