Lawsuit Against Bronfman Over Warner Buyout Tossed
December 24, 2008 at 5:14 AM (PT)
WARNER MUSIC GROUP Chairman/CEO EDGAR BRONFMAN, JR. may not be close to settling a disagreement with YOUTUBE over music video revenue (NET NEWS 12/22), but at least he's out from under a $100 million lawsuit, writes TODAY's WASHINGTON POST.
The lawsuit, a hangover from the $2.6 billion leveraged buyout of the music company from TIME WARNER in 2004, was filed by former SIMON & SCHUSTER CEO RICHARD SNYDER in 2007. SNYDER claimed he wasn't compensated properly for his role in bringing investment bankers to the deal and sued BRONFMAN personally. But the NEW YORK Supreme Court disagreed, dismissing the case TUESDAY and ordering SNYDER to cover the court costs. BRONFMAN said SNYDER's role was exaggerated. The court cited a statute that voids oral agreements to compensate for negotiations.
"Today's decision confirmed what we have said all along -- that DICK SNYDER's claims were nothing more than a work of fiction," BRONFMAN's attorney, ORIN SNYDER, said in a statement.