JAY-Z has been accused by Bacardi of backing out of a deal to sell his ownership stake in D’USSÉ.
According to TMZ, Bacardi — Hov’s 50/50 partner in the liquor brand — claims both parties agreed on a “handshake deal” last December that would see Bacardi’s subsidiary, Empire Investments, purchase JAY-Z’s 50 percent share.
According to new legal documents filed by Bacardi, however, the Brooklyn-bred billionaire abruptly reneged on the deal and demanded double the price they agreed upon. It’s unclear what the original valuation due to the documents being redacted.
JAY-Z previously filed a lawsuit against Bacardi in October over concerns about financial transparency. Hov’s SC Liquor company demanded Bacardi open up its books and reveal the “location of all warehouses storing D’USSÉ barrels, bottles and accessories” in an effort to “protect SC’s rights.”
Bacardi claims it has already submitted more than 800 pages of financial records, and any further documents are off limits because they contain Bacardi data that is separate from their D’USSÉ partnership.
It was later reported that Hov was looking to sell his ownership stake in D’USSÉ to Bacardi, but he believed the spirits giant was trying to lowball him.
Legal documents revealed JAY-Z and SC Liquor exercised its right to a buyout around a year ago, with Bacardi being obliged to “negotiate in good faith” to come up with a fair price.
But SC Liquor claimed Empire Investments was trying to “stall and stonewall” efforts to reveal an accurate valuation of D’USSÉ. JAY-Z believed Bacardi was intentionally mismanaging the cognac line in ways to lower profits.
The documents contained a potential valuation of D’USSÉ offered by both sides, but Bacardi’s figure was apparently “well below” what Hov believed the company was worth, estimating its value to be over $100 million.
A hearing in the case is scheduled for Friday (November 4) in New York.