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Former Beats executive sues Beats Audio for breach of contract, seeks $20 million

Posted: , by Alan F.

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Former Beats executive sues Beats Audio for breach of contract, seeks $20 million
David Hyman, the founder of streaming music service MOG Inc., is suing Beats Audio. He is claiming that he was fired on purpose by Beats so that the latter would not have to give him any equity in the company. Hyman says that as part of the deal in which MOG was sold to Beats, he was promised 2.5% of the company's equity if Beats reached a market value of $500 million.

But based on Hyman's court filing, he was fired a year later, which kept him from collecting on the equity. Hyman says that the termination of his employment was done on purpose to keep him from being awarded with the equity. The firing kept him from "receiving the fruits and benefits" of the deal he made with Beats.

While Beats co-founders Jimmy Iovine and Dr. Dre were not personally named in the suit, Hyman is seeking $20 million for Breach of Contract. Just in case you were wondering, 2.5% of $500 million is $12.5 million. And 2.5% of $3.2 billion is $80 million. Apple is rumored to be putting together a $3.2 billion acquisition of Beats Audio, mostly for its streaming music service.

source: Reuters

20 Comments
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posted on 16 May 2014, 22:55 10

1. fsalto98 (Posts: 31; Member since: 25 Apr 2014)


Dude needs to stand up and get what he's owed. Good Job

posted on 16 May 2014, 23:31 1

4. Ashoaib (Posts: 2293; Member since: 15 Nov 2013)


Get the imoney

posted on 17 May 2014, 05:40 3

16. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


Beats another hype

Beats been like Apple people believing their products are great when there not

posted on 16 May 2014, 23:14 2

2. bugsbunny00 (Posts: 1151; Member since: 07 Jun 2013)


i second the motion...

posted on 16 May 2014, 23:24 2

3. ihavenoname (Posts: 1442; Member since: 18 Aug 2013)


Hopely he wins.

posted on 16 May 2014, 23:37 10

5. androiphone20 (Posts: 1472; Member since: 10 Jul 2013)


Should this guy get his money? Beats me.

posted on 17 May 2014, 00:07 4

6. techperson211 (Posts: 678; Member since: 27 Feb 2014)


Why am I not surprise? Beat the hell out of them !! Go get what you deserve.

posted on 17 May 2014, 00:15 4

7. cj100570 (Posts: 204; Member since: 12 May 2009)


Not surprised by this lawsuit at all. He smells a payday. If he believed he was being fired unjustly, why didn't he complain at the time? I predict he'll end up with nothing.

posted on 17 May 2014, 00:49 2

8. joey_sfb (Posts: 3003; Member since: 29 Mar 2012)


No company would pay any employee 80 million if they could get away with it.

posted on 17 May 2014, 03:48 2

12. joey_sfb (Posts: 3003; Member since: 29 Mar 2012)


But he is a founder of streaming music service MOG Inc. He should get his share regardless of whether he work for beat or not...

Its a complex issue. And from the comments here, one could tell which one of you are Apple fanboy.

posted on 17 May 2014, 01:09

9. techloverNYC (Posts: 407; Member since: 20 Nov 2012)


This guy is greedy. Once he knew apple might buy beats, he jump into it finding any loophole possible to get his share.

posted on 17 May 2014, 01:27

10. fzacek (Posts: 1898; Member since: 26 Jan 2014)


He can't really prove that they fired him on purpose to stop him from getting his share though...

posted on 17 May 2014, 05:03 2

14. microsoftnokiawin (Posts: 971; Member since: 30 Mar 2012)


but he can prove that he didn't get his share regardless of he was hired or not !

posted on 17 May 2014, 03:21

11. Cyberchum (Posts: 270; Member since: 24 Oct 2012)


And where we'r you all these while.
.

Going through the paper works or waiting for the right time? Which ever way, a huff and a puff won't be enough.

posted on 17 May 2014, 04:44 1

13. mr.techdude (Posts: 551; Member since: 19 Nov 2012)


Beats are like iPhones their crap headphones but people worship the name beats by Dre like apple iphone

posted on 17 May 2014, 05:37 2

15. nctx77 (Posts: 536; Member since: 03 Sep 2013)


I think you got that backwards buddy. Last I checked, Android has the biggest global market share and 98% of the phones are cheap plastic crap with a bunch of half baked features that no one uses.

posted on 17 May 2014, 08:34 2

17. Arte-8800 (banned) (Posts: 4562; Member since: 13 Mar 2014)


Jealous

Says the guy talking nonsense

posted on 17 May 2014, 13:15

18. rn9215 (Posts: 45; Member since: 05 Mar 2012)


Beats is awesome... I don't think they suck... For an average Joe like me, bass is what that matters and beats deliver it with decent quality and good looks... I think beats is awesome... No matter what stupid folks say

posted on 17 May 2014, 13:32 3

19. quakan (Posts: 1199; Member since: 02 Mar 2011)


They're just really loud and you notice how overvalued they are when you play music loudly and you can hear how the bass is over exaggerated and the highs just aren't crisp.

posted on 18 May 2014, 04:09 1

20. 0xFFFF (Posts: 3322; Member since: 16 Apr 2014)


"Average Joe disses the stupid folks who think Beats is overpriced crap"

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