A judge has thrown out a former partner’s claim that the he was double-crossed by Beats co-founders Dr. Dre and Jimmy Iovine during negotiations for the headphone maker’s $3 billion sale to Apple, the Associated Press reports.
Noel Lee, founder of video and audio cable maker Monster, contended that Dre and Iovine orchestrated a “sham” deal with HTC in 2011 that led to the termination of Beats’ alliance with Monster and reduced his 5 percent share in Beats to 1.25 percent. Lee said Beats’ misrepresentations led him to sell off that remaining stake for $5.5 million in 2013, ahead of the 2014 Apple deal that would have made that stake worth $30 million.
Los Angeles Superior Court Judge William Fahey issued a summary judgement that Beats’ actions were fully allowed under the existing contracts and that Lee was responsible for his own decisions as a “sophisticated investor.” The trial, which is scheduled to start next week, will now be limited to whether Monster will have to pay attorney fees and legal costs to Beats.
Both Apple and Monster declined to comment, but Beats has always maintained the the Monster lawsuit was frivolous.
.
