Rapper and businessman 50 Cent was awarded a $14.5 million settlement from a former law firm that represented the performer. The lawsuit alleged the firm misrepresented the rapper during a headphone lawsuit.
50 Cent (legal name Curtis Jackson) was ordered to pay Sleek Audio $16 million in a 2014 lawsuit. The company targeted Jackson after he severed ties with the headphone maker to create his own brand of headphones. The lawsuit, lost by Jackson, ended with the court ruling in favor of Sleek Audio, finding that Jackson’s own brand used “basically the same design.”
Jackson filed a malpractice claim against Garvey Schubert Barer (GSB) following the court’s decision. GSB represented Jackson against Sleek Audio.
The claim against GSB stated that the firm didn’t represent the rapper’s interests in licensing negotiations with Sleek Audio. The suit called into question the firm’s decision not to call in technical and damages experts to rebut the testimony of Sleek Audio’s experts.
50 Cent filed for Chapter 11 after filing for bankruptcy in July 2015.
The reorganization plan agrees to pay Sleek Audio $17 million. The rapper also needs to pay $7 million in damages due to a privacy lawsuit. The $14.5 million settlement is likely to go into the reorganization plan.
Under the bankruptcy plan, Jackson will pay Sleek Audio $12.5 million. The settlement with GSB will cover more than half of the money owed via the plan.
The plan was put into place less than six months ago. Under the plan, Jackson has a period of five years to satisfy all his debts. The settlement will position the rapper’s estate to pay off the remaining debts and move forward.
GSB, under the terms of the settlement, will not admit to liability. If the law firm defaults on the settlement, 50 Cent can seek attorney fees. All client files from the firm linked to 50 Cent must be returned.