'N Sync, Ex-Promoter Settle Suit
The Associated Press
By MIKE SCHNEIDER
ORLANDO, Fla. (AP) - After months of rancorous legal maneuvering, 'N Sync and its former promoter on Wednesday settled a lawsuit that allows the multiplatinum singing group to keep its name while changing record companies.Details on the out-of-court settlement between 'N Sync and Lou Pearlman were not disclosed.
The settlement allows 'N Sync to keep its name and leave a record deal Pearlman negotiated for them with BMG Entertainment, based in Germany, and go to another record company, Zomba Group's Jive Records, home to fellow teen pop acts, The Backstreet Boys and Britney Spears.
Under the settlement, Pearlman's company, Trans Continental Group, will receive future compensation from 'N Sync. Zomba also will continue a distribution agreement with BMG, the No. 2-ranked music company in the U.S. market based on current sales. ``All parties involved are extremely pleased,'' 'N Sync said in a joint statement with Trans Continental. A lawyer for Pearlman did not return a phone call seeking additional comment. Pearlman had been seeking $150 million in his breach-of-contract suit filed in U.S. District Court in Orlando. 'N Sync won the first round of the legal battle in November when a federal judge refused to issue an injunction barring the group from using their name and releasing their next album under the 'N Sync name.
'N Sync had claimed that Pearlman and Trans Continental cheated them out of earnings and royalties and failed to sign them to a U.S. record company. Pearlman ``was an unscrupulous, greedy and sophisticated businessman who posed as an unselfish, loving father figure and took advantage of our trust,'' 'N Sync member J.C. Chasez said in a court filing last month. ``While hugging us and calling us 'family,' (he) was picking our pockets, robbing us of our future and even endangering our health.''
Pearlman signed 'N Sync to a record deal in 1996. The group has since become one of the most popular in the world, earning $44 million from its 1999 tour alone, according to the trade publication Amusement Business. ``Without Lou Pearlman, there would be no 'N Sync and these five young men might well still be among the thousands of talented young performers who took a shot at the highly competitive music business and remain in obscurity,'' Pearlman's attorney, Michael Friedman, said in a statement last month. Pearlman has previously tussled with another boy group he launched to success. Last year, Pearlman and The Backstreet Boys settled a lawsuit about how to share an estimated $200 million in revenue the group has generated so far.
