Media

MOG founder sues Beats Electronics for $20M ahead of rumored Apple acquisition

Founder of now shuttered music service MOG David Hyman is suing Beats Electronics for upwards of $20 million, according to a lawsuit filed yesterday.

Hyman joined Beats after the company purchased the MOG streaming music service back in 2012, which eventually evolved into the current Beats Music service. Hyman said he was fired after trying to get rid of a “problematic” employee a bit less than a year after the MOG acquisition.

Under Hyman’s contract, Beats agreed to pay him 2.5 percent of current equity — with 1 percent of that due after his first year with the company. However, since he was fired before that time, Hyman never got that equity.

The lawsuit comes a week after news broke that Apple was rumored to be in final discussions to acquire Beats for $3.2 billion. And while neither Apple nor Beats has confirmed the rumor, it makes sense that Hyman would want take action in the event that Beats changes hands. (Also, Apple’s lawyers have to be much harder to go up against than Beats’.)

Via The Wrap

More information:

Apple designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes t... read more »

Beats Music is a music streaming service spun out of Beats Electronics and into its own company in early 2013. The core experience will be centered around curated playlists created by musicians and music writers. It is currently in pri... read more »

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11 comments
Robin L. Hudson
Robin L. Hudson

Just all part of the "Billionaire's tax". No biggie for Apple.

Denise Newton
Denise Newton

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Grim Reefer
Grim Reefer

Business...its a 'shadowy world, slipperygray' .....I'm with Dave on this one, though it has naught to do with any David v Goliath aspect, nor friendship, nor animosity.  I think right/wrong are immutable and Beats done David wrong.

K N
K N

What have we learned from all this? Dre is a snake, screwed Dave and Monster over. Watch it when dealing with him.

Kevin Lee Phillips
Kevin Lee Phillips

@luke absolutely. I'm betting all original Mog subscribers would love to help make sure that happens. We've all lost out in this deal after deal.

Luke Fullagar
Luke Fullagar

Hope he gets ten times that, and that the guy who invented beats and was shut out and ripped off by its owners also makes a mint.

Anise Smith
Anise Smith

Dude needs to have a seat or #HaveSeveralSeats I hope that he gets a goose egg! He just looks like another opportunistic douche-canoe for coming out now. He would have been believable had he decided to sue before the acquisition.

Markis Andrew
Markis Andrew

Armando Palogrino this is that thing I was taking about

David Swinney
David Swinney

$20M? Pocket change for a proposed $3.2B acquisition.. Go big or go home.