Monster files a lawsuit against Beats Music and its co-founders for fraud

News / Mobile phones

Monster files a lawsuit against Beats Music and its co-founders for fraud

  • 2015-02-11 17:02:12
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News / Mobile phones Monster files a lawsuit against Beats Music and its co-founders for fraud

Monster has filed a lawsuit against Beats and its co-founders, Jimmy Iovine and Dr. Dre, in North California claiming that the Beats co-founders hid business dealings from the company and its CEO. Beats eventually cut the latter off totally before being purchased by Apple for $3 billion.

Monster claims in its lawsuit that Beats used similar methods in the past to get musicians and other companies onboard. It then gained all the inside information and trade secrets from them before dumping or completely ignoring them.

The complaint goes on to say that the company has a “pattern and practice” to “lure entrepreneurs, musicians, and electronic product developers with promises of growing a business as partners,” then quickly turn around and “squeeze the trusting partner out of the equation.” That’s only after they’ve plucked things like intellectual property, as well as production and supply secrets, the complaint adds.

Monster and others in the lawsuit claim the same thing happened right before HTC acquired a major stakes in Beats Audio. The former was kept in the dark, even though Beats had promised otherwise. A month later, Beats ended its agreement with Monster on the latter manufacturing headphones for it.

To make matters worse, Beats then proceeded to bad mouth about Monster to all their common distributors and retailers, who were initially introduced to the company by Monster itself. Beats then eventually forced distributors and retailers to completely drop Monster’s lineup of audio products.

None of this should come as a surprise especially after Gizmodo had revealed back in 2013 how Beats manipulated and used Monster for its own gain before completely rubbing them off. Here’s hoping that Monster and others get some justice through this lawsuit.

[Via The Verge]

Categories: Mobile phones

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