Pras accused of fraud in relation to Harbourview rights deal
completemusicupdate.comA US-based company called Open On Sunday LLP has sued Pras and investment firm Harbourview over a rights deal they announced back in July.
Open On Sunday claims that it had an existing loan agreement in place with the Fugees member that was secured on the rights he then sold to Harbourview in that deal.Open On Sunday allows artists and songwriters to access upfront cash by selling their copyrights or royalty rights to the firm, with the option to buy them back down the line.
Harbourview, meanwhile, is one of those equity funds that has been going around of late buying up music rights in big money deals, backed by Apollo Global Management.In its lawsuit, Open On Sunday says that it agreed a deal with Pras back in January which included a loan agreement secured on royalties that the musician earns from Sony Music in relation to the Fugees’ output and his 1998 solo album.In February, it alleges, Pras asked for that agreement to be amended so that the loan would be secured on a book deal for an autobiography rather than the music royalties.
But Open On Sunday declined to amend the agreement in that way.The musician also allegedly asked for another $3 million loan to fund his defence counsel in relation to the criminal investigation into his connections with Malaysian businessman called Jho Low and the so called 1MDB scandal.Concurrent to all that, Open On Sunday claims, Pras failed to meet his obligations under the loan agreement.
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