JAY-Z has filed a lawsuit against Iconix Brand Group Inc. for allegedly lying about about its finances when making business deals with Roc Nation.
According to the Associated Press, the suit was filed on Thursday (July 4) in the state court of Manhattan and accuses the defendant company of “fabricating financial reports to falsely inflate its earnings” when it entered into a brand partnership with Roc Nation in 2013.
The suit explains, the accusations come “out of a massive years-long fraud perpetrated by Iconix and its affiliates to amass a portfolio of trademarks under false pretenses, in the process defrauding its licensees and partners, and setting off a colossal accounting scandal the depths of which are still being uncovered.”
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The “colossal accounting scandal” also “sent its share price from a peak of more than $400 per share in 2014, to less than a dollar today.”
Last year, Hov was privately questioned about the fraud allegations by the Securities and Exchange Commission. His attorneys said they didn’t think the newly minted billionaire had any relevant information to share with SEC investigators at the time.
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As a result of Iconix’s actions, the suit says Hov and his companies “have incurred substantial legal expenses in connection with, among other things, the federal government’s investigations into Iconix’s massive fraud.”
The plaintiffs are seeking payment of legal fees and unspecified damages.
