Judge Dismisses Key Claims of Monster's Lawsuit Against Beats

Los Angeles Superior Court Judge William Fahey today dismissed the key claims in a lawsuit that alleged that Beats co-founders Jimmy Iovine and Dr. Dre double-crossed former partner Noel Lee, founder of cable maker Monster, reports The Associated Press. The allegations were made in a lawsuit that was filed last year.

beatsimage.jpg
Monster's lawsuit accused the Beats co-founders of orchestrating a "sham" deal with HTC that would terminate Monster's stake in Beats. Monster used to design and sell Beats by Dre headphones, but that changed when Beats sold 51 percent of the company to HTC in 2011, invoking a change-of-ownership clause in the Beats and Monster deal.

Beats Electronics later repurchased HTC's stake in the company and convinced Lee to sell part of his 5 percent stake. Lee alleges that the moves were made to exclude Monster from Beats by Dre profits and, later, the Apple acquisition, which would have netted Lee more than $100 million if he had kept his stake.

Judge Fahey concluded that Beats' actions were allowed under the contracts they had signed with Lee and Monster, and that Lee and his company had entered into business with Beats as sophisticated investors. Fahey also dismissed Monster's claims against HTC America.

Last July, Apple revoked Monster's "Made for iPhone" license after the lawsuit. The trial is still scheduled to go on next week, but will be limited to Beats' effort to force Monster to pay its attorney fees.

Top Rated Comments

Krizoitz Avatar
70 months ago
Looks like Apple paid off yet another judge.

Oh well, beats still suck.
And by "paid off another judge" you mean successfully argued its case using case law and legal precedent?
Life tip: Not everything you disagree with is some nefarious and twisted scheme. Very often its just life.
Score: 30 Votes (Like | Disagree)
M87 Avatar
70 months ago
Can someone please sue apple for not making computers anymore. Thanks.
Score: 27 Votes (Like | Disagree)
dec. Avatar
70 months ago
And by "paid off another judge" you mean successfully argued its case using case law and legal precedent?
Life tip: Not everything you disagree with is some nefarious and twisted scheme. Very often its just life.
Not even sure why you'd think it's worth replying to completely brain dead garbage like that. :-)
Score: 9 Votes (Like | Disagree)
DPUser Avatar
70 months ago
Any company (or its founder) that can sell cables listed as "for bass" vs "for guitar" and speaker cables that cost monster dollars yet don't outperform zip cord won't find me shedding tears when it loses.

Can someone please sue apple for not making computers anymore. Thanks.
But THIS ^ is really good.
Score: 6 Votes (Like | Disagree)
carrrrrlos Avatar
70 months ago
The smug is off the chart in that photo.
Score: 5 Votes (Like | Disagree)
CarlJ Avatar
70 months ago
Monster's argument seems to be "we got outmaneuvered, so somebody needs to pay us, because waaaah". Too bad. Karma is a bitch. Monster Cable has a long history of bullying other companies unreasonably:

* Monster Cable: Good products, dick company - TechCrunch ('https://techcrunch.com/2009/04/21/monster-cable-good-products-dick-company/')
* Monster Cable Correspondence - BlueJeansCable ('http://www.bluejeanscable.com/legal/mcp/')

The last pdf in the BlueJeansCable link is a mildly fun read (watch what happens when Monster Cable decides to have their lawyers bully a small high-end cable company, whose founder happens to be a retired lawyer skilled in litigation).
Score: 5 Votes (Like | Disagree)

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