Edgar vs Madonna?

The dispute between Maverick and Warner Music, that has been ongoing for more than a year, and represents a significant headache for the new ownership group headed by Edgar Bronfman Jr, will be fought in the courts.

According to the New York Post, Warner Music yesterday filed an action asking a judge to declare that claims made by Madonna’s Maverick Records – that Warner has violated the terms of a joint venture agreement – are baseless.

At the same time, Maverick is expected to file a lawsuit today in Los Angeles Superior Court seeking more than $200 million in damages and asking to terminate the joint venture deal and allow Madonna and her business partner, Hollywood power broker Guy Oseary, to walk away from Warner.

You can read the full article from today’s New York post by clicking the link below.

EDGAR FACING SHOWDOWN WITH MAVERICK MADONNA

March 25, 2004

The bitter dispute between Madonna and Warner Music will be fought in the courts.

Warner Music yesterday filed an action in a Delaware court asking a judge to declare that claims made by Madonna’s Maverick Records – that Warner has violated the terms of a joint venture agreement – are baseless, The Post has learned.

Meanwhile Maverick, which is represented by famed Hollywood attorney Bert Fields, is expected to file a lawsuit today in Los Angeles Superior Court seeking more than $200 million in damages, according to sources familiar with the matter.

The lawsuit will also ask the court to terminate the joint venture deal and allow Madonna and her business partner, Hollywood power broker Guy Oseary, to walk away from Warner.

Warner’s filing in Delaware is under seal, but Maverick’s lawsuit will become part of the public record today.

The dispute between Maverick and Warner has been ongoing for more than a year, and represents a significant headache for the new ownership group headed by Edgar Bronfman Jr., which recently acquired Warner Music for about $2.6 billion.

Oseary referred calls to Fields, who declined comment on the suit until it is filed. A spokesman for Warner Music declined comment.

Madonna and Warner formed Maverick 11 years ago, and according to the terms of the deal Warner has the option to buy out the 60 percent of the label it doesn’t own at the end of 2004.

The two sides are now dickering over what Maverick is worth. According to one published report, Madonna and her associates believe their stake is worth about $60 million.

But sources say Warner claims it is worth much less, and that Maverick has not made money since 1998.

In addition to Madonna herself, Maverick boasts such successful artists as Alanis Morissette and Michelle Branch.

Separately, Madonna is in an ongoing dispute with Time Warner over a stock options package she received prior to the media giant’s merger with America Online – a deal that resulted in the collapse of Time Warner’s stock price and made the options worthless, sources say.

The legal battle comes amid a wide-ranging restructuring at Warner Music, which is merging its two East Coast labels, Atlantic and Elektra, and laying off about 1,000 employees.

Source: Tim Arango, New York Post