Madonna Sues Warner for Maverick

Madonna Forum

MADONNA SUES WARNER OVER JOINT VENTURE

Superstar Madonna is suing Warner Music for $200 million over a breach of contract concerning their joint venture -- Maverick Records.

The lawsuit filed by the singer, 45, is the culmination of a yearlong dispute between Maverick and Warner. Madonna is the majority owner of Maverick -- which she started 11 years ago -- and is home to artists like Alanis Morrisette and Michelle Branch.

Maverick's attorney Bertran Fields says, "Madonna has been very active in the decision making."

The lawsuit claims that Warner failed to promote Maverick artists -- as well as issues such as pricing. It is demanding that Madonna and her business partner Guy Osear should be freed from the partnership.

According to terms of the deal, Warner reportedly has the option to buy out the 60 percent of the label it does not own at the end of the year.

A source says Madonna and her partners had tried to sell her 60 percent stake in the label to Warner Music and its former patent Time Warner.

However, talks broke down as Warner Music offered far less than the asking price.

A spokesperson for Warner says, "Warner Music Group is simply seeking to affirm that the claims Maverick Records has been making against the company over the past year regarding the joint venture are baseless, unsubstantiated and without merit.

"We look forward to resolving this issue so all parties can move forward with clarity.

"This effort to resolve ongoing contractual issues surrounding the Maverick Records joint venture agreement in no way impacts the company's deep respect for Madonna."

The dispute does not affect Madonna's own music as the singer records under Warner.

MADONNA'S WARNER DISPUTE WORSENS

Madonna's dispute with Warner Music over her Maverick imprint has become increasingly acrimonious -- with Warner accusing the label of losing $66 million in the last five years.

The pop queen is suing Warner for $200 million, claiming their mismanagement is responsible for Maverick's loss making.

However, it has emerged Warner preempted Madonna's March suit by launching a "sealed" lawsuit, claiming the singer must pay $92.5 million to terminate their association -- or face Maverick being turned into a "purely passive economic interest."

Such a move would mean Warner Music taking control of the label -- which boasts artists including Alanis Morissette and Michelle Branch -- and stopping a share of the profits going to Madonna and her partners until their debts were cleared.

MADONNA'S FEUD WITH WARNER COMES TO AN END

Madonna's bitter battle with Warner Music Group has finally come to an end, after the company agreed to buy her out of Maverick Records, the label she co-founded 12 years ago.

Madonna's Maverick Records debuted with a flourish and included the multi-platinum debut of Alanis Morissette's Jagged Little Pill in 1995.

Madonna and partners Guy Oseary and Ronnie Dashev together owned 60 percent of the company; Warner Music owned 40 percent.

In March, Maverick filed suit against Warner Music and its former parent, Time Warner Inc., claiming breach of contract and alleging that they had misstated Maverick's profits and mismanaged the company, costing Madonna and her partners millions of dollars.

Warner Music filed a lawsuit of its own against Maverick, claiming the company had lost tens of millions of dollars.

In an agreement announced Monday, Warner Music said it would buy Madonna and Dashev, Maverick's chief operating officer, out of their share of the label. Madonna will have no role in the company, while Oseary will keep his share and stay with Maverick as CEO.

Neither side has disclosed the financial terms. The deal does not affect Madonna's own recording contract with Warner Bros., her home since 1984.

Lawyer Bert Fields, who represented Maverick, says, "It was an effective way of settling the lawsuit. It's clean and equitable, and it doesn't have anything to do with her record contract."