The never-ending legal battle between Journey members Jonathan Cain and Neal Schon erupted again this week, with Cain filing a new lawsuit against Schon over claims that his “exorbitant” spending is threatening to cripple the band’s touring operations.
In a complaint made public in Delaware court on Tuesday (July 30), Cain claimed that Schon’s alleged spending — including unilaterally chartering private jets and charging personal expenses to their shared American Express card — has led to a “deadlock” that must be resolved.
“The deadlock between the company’s directors is now interfering with the company’s ability to take even the most basic actions and is causing significant disruptions in the smooth operation of the company,” Cain’s lawyers write, adding that the problems “pose a severe threat of harm to the company and to Journey’s storied history of musical greatness.”
Legal battles are nothing new for Schon and Cain, the two key remaining members of an iconic rock band that’s still printing money decades after its “Don’t Stop Believin’” heyday.
Back in 2022, Schon sued Cain over allegations that his bandmate had unfairly blocked his access to the Amex account, “interfering” with the band’s activities and delaying payments to crew members and vendors. A few months later, Cain sued him back — claiming he had placed those restrictions on the Amex to stop Schon from “misusing” the company card, including spending $400,000 in a single month.
The new case, filed in Delaware’s Chancery Court, largely rehashes those same disagreements over spending — like Cain claiming that Schon has “spent up to $10,000 per night for hotel rooms for him and his wife” during their most recent tour.
But in technical terms, the new case focuses narrowly on the governance of Freedom 2020 Inc., a Delaware-based corporate entity they created to operate Journey’s touring. Since Cain and Schon each control exactly 50% of the company, the lawsuit says the two have reached an impasse that has spilled into other aspects of the band’s operations, like managing their staffers.
“Petitioner and respondent are deadlocked with regard to issues concerning the hiring and firing of company employees and Band crew members,” Cain’s lawyers write in the lawsuit. “It is common that one director will terminate an employee or crew member, and hours or days later, the other director will rehire that same individual.”
The lawsuit claims the strife between Cain and Schon has also led to other problems, including disagreements about whether to accept an advance from AEG for their most recent tour, the purchase of cancellation insurance and other problems.
“The deadlock between petitioner and respondent has created a toxic internal environment,” Cain’s lawyers write. “Rather than focusing on the band’s performances during a major international tour, the band’s [members and crew] now find themselves caught in the middle of the directors’ disputes, afraid of performing their job responsibilities, and pressured to align with one director or another.”
As a solution, Cain is asking the court to appoint a neutral third director of the company, who will be able to “issue the tie-breaking vote” during disputes over key issues.
In a statement to Billboard, Cain’s attorney Sid Liebesman stressed that his client was not seeking damages and only wanted to to resolve the impasse: “It is expected that the third director will provide resolution to the issues between Jon and Neal,” Liebesman said. “It is Jon’s intent for Journey to continue providing great live music throughout the current tour.”
An attorney who has represented Schon in his previous litigation with Cain did not return a request for comment on Friday (Aug. 2).
Even before Schon and Cain came to blows, members of Journey had been sparring in court for years. Back in 2020, the two men teamed up to file a lawsuit against former drummer Steven Smith and former bassist Ross Valory over the band’s name. And in 2022, former lead singer Steve Perry took legal action to stop Schon and Cain from registering federal trademarks on the names of many of the band’s biggest hits.