Friday, September 14, 2018

Scooter Braun Sues Troy Carter Alleging $10M Loan Default | hypebot

Troy_CarterA new lawsuit pits Scooter Braun, who manages Ariana Grande and Justin Bieber against recently departed Storify executive and former Lady Gaga manager Troy Carter. Scooter Braun’s Ithaca Management Holdings has filed suit against Troy Carter, his wife and his company Atom Factory for fraud and breach after Carter allegedly defaulted on a $10 million loan.  



"Scooter Braun, went back on his word... It doesn’t just damage me; it’s also damaging to the young black executives coming behind me."

Two music executives that once were friends are now on the opposite sides of what is already turning into a messy lawsuit. 

Scooter Braun’s Ithaca Management Holdings alleged in a Los Angeles Superior Court filing that Troy Carter and his company, Atom Factory defaulted on an obligation to pay back a a June 3, 2016 loan of more than $10 million, including outstanding principal and interest.

Atom Factory’s Culver City, California offices were put up as collateral to secure the loan, according to court documents.

Carter was apparently in an arbitration with an unnamed party, and when that it was settled, the proceeds were to go to help pay off the loan.  But according to the court filing, when Carter settled the arbitration in March 2018, the settlement was transferred outside of Atom Factory and not used to pay down the loan.

In a statement to Billboard, Carter said

"Sadly, Scooter Braun, went back on his word. The fact is that I’ve never borrowed a dime from him, nor have I needed to. Ithaca has already received in excess of $12 million for my repurchase of the company. The equity they originally held became debt with collateral attached. Nothing out of the ordinary. He decided to file a lawsuit after we reached a stalemate on interpretations of the balance of debt...

"I've done what I've done against all odds. There are only a handful of African-American executives left in our business and yet he’s okay with attempting to falsely ruin my reputation. It doesn’t just damage me; it’s also damaging to the young black executives coming behind me. I represent and helped build a culture he financially benefits from.

"Initially I took this personal, until I learned he did this to another manager who lost a big client. He bailed on him the same way and threatened him with fraud if the money wasn't returned. "


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