The musician's mother is furious when LAX did not turn his share of profit in an exclusive deal made before his death last year.
DJ AM's mother has filed suit against bosses of a California investment company, accusing them of exploiting the tragic star's name to boost business. The DJ, real name Adam Goldstein, became part-owner of top Las Vegas nightclub LAX in 2005 after signing a deal with Loyal Pennings, manager of venue owners YTK Investments, LLC.
Under the contract, the star's company, AMLV, Inc., acquired a 45.5 per cent share in YTK and granted executives a "limited, non-exclusive licence to use Mr. Goldstein's name and likeness" to promote the celebrity hotspot.
But Goldstein's mother, Andrea Gross, has accused Pennings and his firm of breaking the terms of the agreement by renaming the venue Las Palmas in the months following the DJ's death last summer and failing to hand over the late star's cut of profits to his estate.
Gross filed legal papers in Los Angeles Superior Court on Tuesday, June 1 for breach of contract, breach of fiduciary duty, misappropriation of likeness and unfair business damages. She is seeking damages in excess of $1 million.
Goldstein died from an accidental drug overdose in August 2009.