Audio technology company Monster and its CEO Noel Lee filed suit inCalifornia yesterday (Jan. 6) against Beats Electronics, headed by Jimmy Iovine andDr. Dreand HTC.
Bloombergreports that the lawsuit allegesBeats used a “sham transaction to abscond with Monster?s technology underlying the headphones, as well as its distribution chain.”
Lee owned 5 percent of Beats, but severed ties between Monster and Beats after what he alleges was afraudulent “change of control” that gave HTC 51 percent ownership of Monster. Those stocks were later sold back to Iovine and Dre for a hefty profit, who in turn sold Beats to Apple for $3 billion.
Lee alleges thatBeats have concealed Monster’s role in designing and developing the technology to make Beats headphones and that the company’s partnership with HTC was a sham that allowed them…
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