Primary Wave Hit With Lawsuit Over $90 Million James Brown Estate Deal
Primary Wave faces a legal challenge over their $90 million acquisition of James Brown's catalog and likeness rights, stemming from a 1999 contract with The Pullman Group.
James Brown singing in concert
Photo Credit: Heinrich Klaffs / CC by 2.0
The Pullman Group filed a lawsuit in Manhattan federal court on November 15, claiming breach of contract. According to the lawsuit, a 1999 agreement granted The Pullman Group exclusive rights to refinance or sell Brown's assets, including music copyrights, royalties, and music-related assets until at least 2059.
The original deal involved The Pullman Group securitizing Brown's assets through Pullman Bonds, providing Brown with $26 million upfront. In exchange, The Pullman Group received exclusive rights to arrange any future refinancing or asset sales following the bonds' recoupment.
The lawsuit alleges that the Brown estate secretly arranged the $90 million Primary Wave deal through Shot Tower Capital, bypassing The Pullman Group's contractual rights. Both Primary Wave and Shot Tower Capital are accused of proceeding with the transaction despite allegedly being aware of The Pullman Group's exclusive rights, which were recorded with the U.S. Copyright Office.
The Pullman Group seeks:
- 12.5% of the Primary Wave transaction value
- $250,000 in liquidated damages
- Contractual costs and legal fees
- Interest from the date of breach
- Compensatory and punitive damages against Primary Wave and Shot Tower Capital
This legal challenge puts the future of Primary Wave's acquisition of Brown's catalog and likeness rights in question, potentially affecting one of the music industry's significant catalog acquisitions of 2021.
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