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

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

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20 Comments

1. fsalto98

Posts: 31; Member since: Apr 25, 2014

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

4. Ashoaib

Posts: 3243; Member since: Nov 15, 2013

Get the imoney

16. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

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

2. bugsbunny00

Posts: 2251; Member since: Jun 07, 2013

i second the motion...

3. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

Hopely he wins.

5. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Should this guy get his money? Beats me.

6. techperson211

Posts: 1280; Member since: Feb 27, 2014

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

7. cj100570

Posts: 204; Member since: May 12, 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.

8. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

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

12. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

9. techloverNYC

Posts: 601; Member since: Nov 20, 2012

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

10. fzacek

Posts: 2486; Member since: Jan 26, 2014

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

14. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

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

11. Cyberchum

Posts: 1009; Member since: Oct 24, 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.

13. mr.techdude

Posts: 571; Member since: Nov 19, 2012

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

15. nctx77

Posts: 2540; Member since: Sep 03, 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.

17. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Jealous Says the guy talking nonsense

18. rn9215

Posts: 51; Member since: Mar 05, 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

19. quakan

Posts: 1418; Member since: Mar 02, 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.

20. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

"Average Joe disses the stupid folks who think Beats is overpriced crap" Welcome to PhoneOnion.

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