The major labels have been accused of cheating musicians out of money that should have been put into a pension plan.
The American Federation of Musicians and Employers Pension Fund have sued Atlantic Records, Hollywood Records, Sony Music, Universal Music Group, and Warner Brothers Records.
The lawsuit says that the labels didn’t make pension contributions from ringback tones and foreign audio streams.
AFM says that the majors made an agreement in the mid 1990s to pay .05 percent of receipts for digital transmissions. This agreement was renegotiated multiple times, most recently in 2012.
In 2014, independent auditors found evidence that the major labels weren’t paying what they agreed to pay. AFM is asking for the missing pension money, late fees, interest, and legal fees.
See the full document here.