G-Unit head 50 Cent is making some less-than-friendly headlines this week after reportedly losing a multi-million dollar lawsuit in relation to a business dispute with former headphones partner Bradenton.
Details of the under wraps case surfaced online early Tuesday (April 8).
The new court papers show 50 Cent needs to pay $11.6 million in damages for misappropriation of trade secrets, unjust enrichment and breach of confidentiality; and another $4.4 million in legal fees and expenses. In a nutshell, here’s what happened: An arbitrator in West Palm Beach found that the rapper, whose real name is Curtis Jackson, stole design secrets from Bradenton manufacturer Sleek Audio to make his own headphones, Street by 50 and Synch by 50. (Miami Herald)
Reports also claim Fif has remained quiet about the loss despite its high-profile significance.
50 was walloped in arbitration last summer — and a federal court in Miami just affirmed the award to Sleek. The singer of Candy Shop and 21 Questions desperately tried to keep the award documents sealed, but the federal court unsealed them recently. So far, 50’s not talking, and neither are his lawyers. Through his company G-Unit LLC, Jackson and Sleek teamed up in early 2011 to market Sleek by 50, a line of wireless, over-the-ear headphones. (Miami Herald)
Reports of 50 and Sleek’s decision to part ways landed online in spring 2011.
In actuality, it was G-Unit that terminated a Brand Licensing Agreement that it had entered into with Sleek, which termination automatically triggered the termination of the earlier announced tri-party agreement. However, not long after the termination of the tri-party agreement, TV Goods and 50 Cent, via his affiliate company, SMS Audio, LLC, entered into a Term Sheet for the two parties to continue joint efforts to produce and distribute a direct response television infomercial to globally market a wireless over-the-ear headphone product offered or sold by SMS that is endorsed by and/or and bears the name of “50 Cent.” Sleek is not a party to that Term Sheet. (Yahoo News)
Months prior, the G-Unit leader unveiled his Sleek By 50 headphones.
Ludacris and 50 Cent, two rappers, actors and entrepreneurs, unveiled their own respective lines of headphones at CES this year. Ludacris showed off a 5-model line branded Soul by Ludacris, and produced by a company called Signeo. And 50 Cent unveiled his own headphones, called Sleek by 50 Cent, which will be made by H&H Imports, a company that last year signed Hulk Hogan on as the sponsor of a line of home cleaning products called PumMax. (Los Angeles Times)