The Business Litigation Blog

50 Cent Settles Legal Malpractice Lawsuit for $14.5 Million

Rapper 50 Cent filed a legal malpractice claim against Garvey Schubert Barer (GSB) because of how they handled a 2014 lawsuit against Sleek Audio. The 2014 case was mishandled and the licensing deal wound up creating a situation where Sleek could say that 50’s new headphones were "basically the same designs" as his Sleek pair. The case was settled outside of court for $14.5 million. 50 Cent’s team at GSB “didn’t adequately represent his interests in licensing negotiations and arbitration disputes with Sleek Audio.”

50 Cent most likely won’t see much of that money because he filed for Chapter 11 bankruptcy and reorganization. This case was in the bankruptcy court of Connecticut. He owes $23 million to creditors. $17 million of that goes to Sleek Audio from the 2014 lawsuit. Then 50 has $7 million more to pay after a privacy lawsuit related to a leaked sex tape.

Craig Weiner released a statement related to the settlement. "We are informed that these proceeds, together with other funds contributed by Mr. Jackson (50 Cent) should position the Estate to provide for the remaining obligations to be satisfied in connection with this successful Chapter 11 Reorganization Plan. This is a most significant achievement, especially considering that the Plan was approved less than six months ago and provided Mr. Jackson with up to five years to satisfy all debts. Mr. Jackson is eager to move forward in doing what is best for his estate and creditors, and this settlement brings us one step closer toward that end."

50 Cent will be paying $12.5 million to Sleek Audio to help cover the debts to them.  A bankruptcy judge has not yet signed off on that payment. If you have a legal malpractice matter contact Jefferey Ogden Katz at jkatz@pattersonlawfirm.com or The Patterson Law Firm at (312)-223-1699. 

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