A PYMNTS Company

US: Music promo giant sued over failed merger

 |  October 17, 2013

CMJ is being sued for nearly $1 million over a failed merger with management and promotional firm Metropolitan Entertainment, say reports.

The music company CMJ, which hosts the annual CMJ Music Marathon and publishes the CMJ New Music Report magazine, are being sued by Metropolitan after the deal, struck in 2009, crumbled.

The lawsuit accuses CMJ of receiving loans of nearly $600,000 from the promo company to fund the Music Marathon festival; court documents say CMJ’s debt is now approaching $800,000.

That, plus $99,000 in legal fees, amount to a lawsuit of about $1 million for CMJ.

In a statement, Metropolitan exec John Scher said CMJ found another investor and accused the company of ignoring their debts with Metropolitan.

Full content: Exclaim

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