{"id":2126,"date":"2024-08-02T01:36:11","date_gmt":"2024-08-02T01:36:11","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/damon-dashs-roc-a-fella-shares-will-be-auctioned-to-pay-off-judgments\/"},"modified":"2024-08-02T15:47:50","modified_gmt":"2024-08-02T15:47:50","slug":"damon-dashs-roc-a-fella-shares-will-be-auctioned-to-pay-off-judgments","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/damon-dashs-roc-a-fella-shares-will-be-auctioned-to-pay-off-judgments\/","title":{"rendered":"Damon Dash’s Roc-A-Fella Shares Will Be Auctioned to Pay Off Judgments"},"content":{"rendered":"
\n

Damon Dash<\/strong>\u2019s one-third stake in Jay-Z\u2019s Roc-A-Fella Records is going up for auction later this month \u2014 but a source tells Billboard<\/em> that the shares might come with some key limitations.<\/p>\n

According to federal court filings this week, the United States Marshals Service will auction off Dash\u2019s 33.3% interest in the storied record company to satisfy an $823,000 judgment against him in a lawsuit filed by movie producer Josh Webber<\/strong> over a failed film partnership.<\/p>\n

The auction, set for Aug 29 at a Midtown Manhattan hotel, will have a minimum bid of $1.2 million, and prospective bidders will be required to post a $240,000 deposit for the right to take part in the proceedings.<\/p>\n

The sale will be for Dash\u2019s stake in Roc-A-Fella Inc., an entity whose primary assets are the rights to Jay-Z\u2019s iconic debut album Reasonable Doubt<\/em>. According to an April article<\/a> by Rolling Stone<\/em>, the rest of the catalog of music released by Roc-A-Fella, which dissolved as an operational label in 2013, is owned by other entities and isn\u2019t involved.<\/p>\n

The owners of the other two-thirds of Roc-A-Fella \u2014 label cofounders Jay-Z (Shawn Carter) and Kareem \u201cBiggs\u201d Burke<\/strong> \u2014 have already attempted to stop the auction, including making changes to the company\u2019s bylaws and intervening in the lawsuit. But a federal judge rejected such opposition in February.<\/p>\n

The chance to own a valuable piece of rap IP will surely draw bidders, but a source with knowledge of the situation tells Billboard<\/em> that there are important limitations to what is being auctioned off \u2014 namely, that they are buying a stake in a company with other members.<\/p>\n

\u201cWhomever buys Dame\u2019s stake in Roc-A-Fella will be a minority owner without authority over any decision-making,\u201d the source tells Billboard<\/em>. \u201cThey won\u2019t have the ability to sell the copyright or borrow against the master as all decisions require majority vote.\u201d<\/p>\n

The source also cautioned that the clock was ticking on Roc-A-Fella\u2019s rights to Reasonable Doubt<\/em>: \u201cThere\u2019s also an expiration date on the master ownership for the company, which means revenue and the only asset doesn\u2019t have many years left.\u201d<\/p>\n

The auction will be coordinated by Webber\u2019s attorney<\/a>, Chris Brown<\/strong>. He did not immediately return a request for comment on Thursday.<\/p>\n

Webber won his judgment back in 2022 after suing Dash for copyright infringement and defamation over their failed partnership on producing a film called Dear Frank<\/em>. But Dash has yet to hand over the money, hence the court-ordered auction.<\/p>\n

The filmmaker isn\u2019t the only one seeking the money from Dash\u2019s Roc-A-Fella stake. The New York City Department of Social Services (NYCDSS) will actually have first dibs, according to court documents, since Dash owes a total of $145,096 in unpaid child support to a woman named Rachel Roy for his two daughters and to a woman named Cindy Morales for his son.<\/p>\n

Brown is also seeking to collect another $155,000 that Dash owes to him and another client, photographer Monique Bunn, from separate legal actions. But they\u2019ve agreed that NYCDSS and Webber deserve to recoup their debts from Dash first.<\/p>\n

If any money from the auction is left over, it will go to Dash himself. His attorney did not return a request for comment on Thursday.<\/p>\n

Back in 2021, attorneys for Jay-Z and Roc-A-Fella sued Dash after news broke that he was planning to auction off a stake in Reasonable Doubt<\/em> as a non-fungible token (NFT). They argued that the company, not Dash himself, owned the rights to the album: \u201cThe bottom line is simple: Dash can\u2019t sell what he doesn\u2019t own.\u201d A year later, Dash signed a settlement in which he agreed that he had no right to sell any part of Jay-Z\u2019s album \u2014 as an NFT or otherwise.<\/p>\n

Last year, attorneys for Jay-Z, Biggs and Roc-A-Fella mounted a concerted effort to stop the court-ordered sale of Dash\u2019s stake in the company. After jumping into Webber\u2019s lawsuit, they told a federal judge that the auction would violate company bylaws, which they had amended in 2021 to prohibit such a sale.<\/p>\n

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But in February, the judge overseeing the case said the updated Roc-A-Fella bylaws had been enacted without Dash\u2019s input and were unenforceable. Instead, he offered an alternative route for Jay-Z and Biggs that would still \u201creadily address their concern\u201d with the sale: \u201cThey can participate in the auction and place the winning bid.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Damon Dash\u2019s one-third stake in Jay-Z\u2019s Roc-A-Fella Records is going up for auction later this month \u2014 but a source tells Billboard that the shares might come with […]<\/p>\n","protected":false},"author":1,"featured_media":2127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[2853,2849,2850,2854,510,2851,2852],"class_list":["post-2126","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lawyers","tag-auctioned","tag-damon","tag-dashs","tag-judgments","tag-pay","tag-rocafella","tag-shares"],"_links":{"self":[{"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/2126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=2126"}],"version-history":[{"count":1,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/2126\/revisions"}],"predecessor-version":[{"id":2129,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/2126\/revisions\/2129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/media\/2127"}],"wp:attachment":[{"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=2126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=2126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usatrustedlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=2126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}