Scooter Braun’s very ugly lawsuit against Troy Carter has finally come to an end.
Several months ago, Scooter Braun and his company, Ithaca Management Holdings, filed a multi-million-dollar lawsuit against former Spotify executive Troy Carter.
Braun alleged that Carter had defaulted on a loan in excess of $10 million, excluding principal and interest.
At first, the former Spotify executive denied the allegations. Then, admitting to defaulting on the loan less than 24 hours later, Carter said, “I’ve done what I’ve done against all odds.”
Carter’s broader statement quickly devolved into a counterattack.
“There are only a handful of African-American executives left in our business and yet [Braun’s] okay with attempting to falsely ruin my reputation. It doesn’t just damage me; it’s also damaging to the young black executives coming behind me. I represent and helped build a culture he financially benefits from.”
Carter also wrote,
“I’m beyond disappointed that Scooter would file such a claim after I was the first person to support him when he was looking to launch Ithaca. I also advocated on his behalf to other management companies he wanted to acquire. I considered us friends.”
The issue stems from a loan Ithaca made to the former Spotify executive.
On June 3rd, 2016, Carter’s company, Atom Factory, had arbitrated a dispute with his former client, Lady Gaga. In desperate need of cash, Carter received $10 million from Braun and Ithaca under one condition. If and when Atom received payment from the settlement, he would immediately pay back Ithaca.
To guarantee payment on the loan, Carter listed his company as collateral.
Unfortunately, claimed Ithaca, that never happened. Atom allegedly settled the case and attempted to hide the money, thus violating the loan agreement. So, Braun and Ithaca sought to freeze Atom’s bank accounts.
Now, the increasingly bitter lawsuit has come to an end.
The end of Braun v. Carter.
According to new court documents, both sides have quietly signed off on a joint notice of settlement on March 19th. Terms of the settlement remain unclear, including repayment on the loan.
Prior to the joint notice, Ithaca had requested full payment in cash of all obligations, totaling $14.5 million.
Reps for both Braun and Carter have yet to issue a statement.
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