July 12, 2005 04:09:20 GMT
Not so long after his sentenced not guilty, the King of Pop is facing a new lawsuit this time over The Beatles library finances
Has just been acquitted of child molestation, the King of Pop is now facing another legal suit, this time over The Beatles library finances. Based on the lawsuit filed Monday in U.S. District Court in Manhattan, a financial company specializing in asset acquisition named Prescient Acquisition Group Inc. claimed Michael Jackson owed $48 million in fees for rescuing his stake in the publishing rights to songs by The Beatles.
It is mentioned that Jacko has enlisted it in November 2004 to provide financial advice and to secure refinancing of a $272 million debt to Bank of America. Thus, on behalf of Jacko and his company MJ Publishing Trust, Prescient secured $537 million in financing from Fortress Investment Group LLC, an amount enough to pay the singer's debt and exercise an option to buy the remaining 50 percent of the Beatles library he not yet own.
This was then claimed by Prescient to be entitled to an immediate payment of $24.8 million, which is 9 percent of the financing used to pay off the Bank of America debt and a $3.3 million advance to Jackson and his company. Hence, the company accused Jackson of breach of contract, saying that it had done what was expected in a written agreement and that Jackson and his company were not entitled to "retain the benefits of those services in equity and good conscience without paying to Prescient an amount to be determined at trial."