Monster Accuses Beats Of Fraud In Headphones Deal
Monster LLC claims Beats forced the company out of a lucrative Apple deal with a series of fraudulent sales.By Evan Thomas | January 7, 2015
Monster LLC and its CEO Noel Lee have sued Beats electronics and HTC for allegedly conspiring to steal headphone design technology Monster co-developed.
A lawsuit filed in California Superior Court alleges Beats co-founders Dr. Dre and Jimmy Iovine hid the plaintiffs’ role in designing and engineering the line of headphones.
Beats sold HTC a 51 percent stake in 2011 for $300 million, then bought back 25.5 percent of its shares a month later. The sales let Beats cut Monster out of the picture under a change-of-ownership clause.