Creating a lucrative and successful business is the dream of many New York entrepreneurs. To have a brand that is prominent, popular and global is a noteworthy goal. And, it is hoped that through hard work, this goal will be achieved. There are, however, problems that arise even when a business is successful. If other companies do not adhere to contracts, commit fraud or there are other behaviors that are cause for commercial disputes, it could lead to litigation.
The business mogul and entertainer Jay-Z alleges that a licensing firm committed fraud against his companies. The allegations against the business say that it misrepresented its financial position when it made agreements with Jay-Z’s Roc Nation clothing company. The companies began working together in 2013. According to Jay-Z (whose real name is Shawn Carter), the company in question provided phony financial reports signifying it had greater earnings than it really did.
The case centers around the company accruing various trademarks fraudulently. As it did so, it defrauded partners and licensees. The entire scope of the illegality is still being investigated. The share price of the company had reached $400 at its peak. It is now worth nearly nothing. Jay-Z is suing for legal expenses incurred when the federal government investigated the licensing firm’s behaviors and for other unspecified damages.
Legal considerations are inevitable with any business, but when there are problems that can sully a respectable company’s name it may be necessary to pursue compensation for the harms suffered. If the company that has been accused of wrongdoing used its affiliation with a respectable and well-known company to inflate its position and make it more valuable while failing to live up to its part of the agreement, business litigation is frequently needed to recover compensation and sever the business agreement.