Backstreet Boys
Litigation Between Backstreet Boys and Mr. Louis J. Pearlman
WHAT'S UP WHEN THE PEOPLE WHO YOU THINK IS LIKE YOUR FAMILY BETRAY YOU?
THIS HORRIBLE FEELING HAVE BEEN FELT BY THE BACKSTREET BOYS!!!!
HERE YOU CAN READ ALL ABOUT THE JUDGE AGAINST LOU PEARLMAN, JOHN AND
DONNA WRIGHT AND TRANSCONTINENTAL!!!
Backstreet Boys vs. Louis Pearlman
The Backstreet Boys are growing up. Their Pop album has graced the top ten list for the past 10 months. Now the hit local group wants more control for themselves and less for manager Louis Pearlman. In Chancery Court, the Orlando, Fla. quintet contends it could be making more money if not for Pearlman. They say Pearlman illegally has taken sole control of the group's business affairs and prevented members from serving on the board of Backstreet Boys Inc. The group is compromised of Nick Carter, Howie Dorough, Brian Littrell, A.J. McLean and Kevin Richardson. They are popular with teenagers around the world. The group's siut claims Pearlman is using the corporation for his own gain. The shareholders' agreement gives him the right to vote they Boy's stock, but it also requires their nominees to be included as directors, said their lawyer, John F. Thomas Jr. "They are the talent and they want the right to have more control over their own destiny," he said. Not so fast, retorts Pearlman, who points out that he created the vocal group, selected its members, trained them and pumped $3 million into the operation in 1993 when two of the five members were still minors without much business experience. Pearlman's Orlando lawyer, J. Cheney Mason, said the Backstreet Boys and their parents signed "an irrevocable proxy" giving Pearlman the right to make all business decisions. Pearlman claims he is sole director. "When it came time for payday, the Backstreet Boys and their parents got greedy and thought they'd try to ignore Mr. Pearlman and his substantial investment into the group's creation," said Mason. "That's not going to happen." Since purporting to elect themselves directors, the members have made a deal with Winterland Productions and sponsorship agreements with Pepsi Cola ans Coca Cola-all without Pearlman's consent, Pearlman said. This week, the Boys counsel, Thomas of Tighe Cottrell & Logan, will argue to keep the case in Chancery Court while lawyer Gregory V. Varallo of Richards Layton & Finger will contend the matter should be resolved by arbitration in Florida. Oral arguments take place at 4:30 p.m. Tuesday before Vice Chancellor Stephen P. Lamb. The dispute over control of the band also is the subject of litigation in the federal courts of Florida and New York, but the Backstreet Boys' Orlando lawyer, Judy Segelin, called the legal spats "a family matter." "The Boys and management are a family and still consider themselves to be a family and there are just some issues they need to resolve within the family," she said. "Everyone is confident we will be able to resolve the issues."
Official Statement Regarding News Reports of Litigation Between Backstreet Boys and Mr. Louis J. Pearlman
ORLANDO, Fla., Sept. 17 /PRNewswire/
Following erroneous and misleading published and broadcast news reports on litigation filed against Mr. Louis J. Pearlman, the following statement was issued on Mr. Pearlman's behalf: ``Though much has been made of the pending litigation between several members of The Backstreet Boys and Mr. Louis J. Pearlman, the artists and management feel strongly that they are a family. This litigation represents what can best be described as a family disagreement. It should also be noted that the case against Mr. Pearlman has been stayed at all levels and no attempt has been made since September 1997 to further any action, while the Boys and Mr. Pearlman vigorously pursue settlement of this matter. In the meantime, Mr. Pearlman is proud of the Boys' talent and their much- deserved success, including their recent Best Group Video Award presented at the 1998 MTV Video Music Awards in Los Angeles on September 10, and looks forward to a long association and even greater accomplishments in the future. In addition, and sadly, the entire Trans Continental family, and Mr. Pearlman particularly, wish to extend their deepest and most heart-felt condolences to Howie Dorough and his family following the tragic loss of Mr. Dorough's sister this past weekend. Our love and prayers are with Mr. orough during this difficult time.`` The Backstreet Boys is a multi-platinum certified, chart topping, international singing sensation. Its five members are Nick Carter, Howie Dorough, A.J. McLean, Brian Littrell and Kevin Richardson. SOURCE: Louis J. Pearlman
Backstreet Boys Resume Legal Struggle With Business Manager
It looks like the legal battle between the Backstreet Boys and the man who discovered them is back on again. After agreeing in July to postpone an earlier suit (see bulletin 10) the Boys had filed in a Delaware court against Louis Pearlman and several other of the group's managers, a U.S. District Court in Orlando has set a November 1, 1999 trial date for another lawsuit brought against Pearlman by four of the Boys -- Brian Littrell, A.J. McLean, Howie Dorough and Kevin Richardson. In the Florida suit, the Boys claim that Pearlman and other business associates did not fully disclose the group's financial net worth and had taken "excessive amounts" in fees from the band, according to The Associated Press. For his part, Pearlman claims that he invested some $3 million in the group for expenses he incurred in transforming the Boys from unknowns into superstars. Despite the pending litigation, the Backstreet Boys are attempting to settle with Pearlman in other related suits concerning control and the distribution of the band's money, and there are additional lawsuits filed against Pearlman in New York and Florida which remain ongoing. Source: MTV News
Backstreet Boys end feud with creator
Source: The Orlando Sentinel, Oct 8 1998 http://www.orlandosentinel.com/
Debbie Salamone Wickham and Leslie Doolittle of The Sentinel Staff Published in The Orlando Sentinel, Oct 8 1998
The Backstreet Boys have found peace with their maker -- at least the man who helped make them famous. The internationally famous Pop singers Wednesday settled their lawsuit with Orlando entrepreneur Louis Pearlman, who created and groomed the group. The dispute had centered on how to share the estimated $200 million in revenue the Orlando performers have generated so far. The settlement terms are secret, but Pearlman remains president of Backstreet Boys Inc. and is "an equal one-sixth Backstreet Boy," Orlando lawyer Cheney Mason said. "It ends the family feud," co-attorney Bill Pringle added. On the outs, however, are Donna and Johnny Wright, who will no longer be the group's managers, Pearlman said. "The boys decided they didn't want it to continue," said Pearlman, who started the group in 1993 by recruiting the performers. "I left it to the boys to make their own decision on that. As we say in the aviation business, 'upward and onward."' The boys are happy with the settlement and insist the split with their managers is amicable. "With growth comes change," said Kevin Richardson, a member of the group. "We're considering management options such as managing ourselves or hiring someone new." Pearlman, 44, had demanded a return on his $3 million investment. But the boys contended he and his companies, investors and management took too much of the money through agreements the boys were fraudulently induced to sign. The feud looked nasty in hundreds of pages of court documents. But both sides called the fight a "family feud" stemming from growing pains. A separate settlement is being finalized with a California merchandising company that got caught in the fray. But a heated battle with a New York record company, Zomba Recording Corp., is still pending. Zomba and Pearlman's companies have sued each other over the Backstreet Boys' trademark, royalties and control. The settlement came the same day the boys -- Brian Littrell, A.J. McLean, Nick Carter, Howie Dorough and Richardson -- were honored in Orlando. The boys and Pearlman were given keys to the city for raising money for the victims of February's killer tornadoes.