Major Labels Sued for Cheating Artists Out of Pension Funds

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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.

8 Responses

  1. Art

    Wait, is this a story on Digital Music News that’s NOT about how Spotify has destroyed all of western culture on it’s own??

  2. smg77

    It’s almost like the major labels and not streaming companies have been the enemy all along.

    • Name2

      [Lower lip quivering]

      [eyes welling with tears]

      “No, it’s not true! Say it’s not true!”

  3. Duke

    If there is a way for labels to screw musicians they will find a way-been like that for decades
    I’m glad the union decided to take action

  4. Anonymous

    Western countries are submitted to mob rule , 100% corruption at every turn and roll of the dice ….. a truly disgusting social framework for honest working human beings

  5. J.Gagnon

    What a Pathetic Global dictatorship business for any nation to involved with , these corporations deserve to be dissolved and have their assets removed and given to charity , then exiled to Mars!