Categories: PHOTOSPEAKS

MOG Founder Suing Dr. Dre’s Beats Electronics For $20 Million

Things changed rather quickly for Dr. Dre. Over the course of a week, the entrepreneur went from being on the cusp of becoming hip-hop’s first billionaire to having his company face a $20 million lawsuit.

MOG Founder David Hyman is filing the multi-million lawsuit claiming Beats Electronics cheated him out of millions by firing him early. The suit claims he was ousted for trying to fire a “problematic employee” and also says Beats Electronic fired him to avoid paying him his due.

“Following through on Defendants’ bad faith plan and scheme … to prevent plaintiff to remain [sic] employed by the Company long enough for his equity grant to vest, the Company terminated Plaintiff when he attempted to exercise his contractual right under the Hiring and Retention Provision  to dismiss the Problematic Employee,” the lawsuit says.

MOG was purchased by Beats Electronics with an incentive plan in June 2012. Hyman was entitled to 2.5 percent of the company’s “currently outstanding equity interests.” One percent was due on the first anniversary of his employment in addition to more installments in the following months.

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Hyman’s suit also notes he was promised 25 percent of the company’s outstanding equity interests if the company earned $500 million in fair market value. The possible logic is that Beats Electronic got ride of Hyman so it wouldn’t have to fulfill that part of this deal.

Dr. Dre and Beats Electronics made headlines last week when Apple was in talks to buy the company for $3.2 billion. This was particularly noteworthy because many believed it would make him hip-hop’s first billionaire.

The contract is still under negotiation, but Forbes concluded that Dr. Dre would be worth $800 million after taxes.

Kanyi Okeke

Kanyi is the Founder & Editor-in-Chief of KanyiDaily.com. When she's not serving DAILY delicious scoops on Entertainment and news, you can find her reading a book by the beach. Keep up with Kanyi on Instagram and Twitter or through her email Kanyi@KanyiDaily.com

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