Jay-Z emerged triumphant on Friday after a judge shot down his former business partner Damon Dash’s attempt to sell his Roc-A-Fella stake.
A federal judge prevented Dash’s attempt to get a temporary restraining order to stop a shareholder meeting that day, according to TMZ.
The executive claimed in filings that the rap icon would try to change the company’s bylaws during the meeting to prevent him from selling his 1/3 stake in Roc-A-Fella.
Shut down: A judge denied Damon Dash’s attempts to prevent his Roc-A-Fella co-founders Jay-Z and Kareem Burke from holding a meeting on Friday, according to TMZ; seen in June
Dash claimed in his filing that he had only recently learned of the meeting between Jay and the record company’s third founder, Kareem Burke, and he was trying to stop it on short notice.
However, the judge wasn’t willing to prevent the parties from meeting.
Instead, they ruled that Dash would have the opportunity to sue over the possible outcome of the meeting, but he couldn’t prevent it from happening.
Last month, Jay-Z filed suit against his business partner for allegedly trying to sell the copyright to his classic album Reasonable Doubt as a non-fungible digital token (NFT), which he said Dash didn’t have permission to sell.
Taking his time: Dash claimed his co-founders were meeting to change bylaws to prevent him from selling his 1/3 Roc-A-Fella stake, but the judge said he could only sue after the fact; Jay-Z seen in January 2020 in LA
Up for sale: Dash previously upset Jay by trying to sell the copyright to his album Reasonable Doubt as an NFT, meaning the buyer could then collect part of the future profits
In documents obtained by Entertainment Tonight, the complaint stated that Damon ‘had planned to sell at a SuperFarm Foundation online auction on June 23’ but is now ‘frantically scouting for another venue to make the sale’ after the auction was canceled, but the firm insisted he has no rights to do so.
The documents state: ‘Dash does not even own Reasonable Doubt or its copyright and, therefore, has no right to sell the album or any rights to it. Instead, RAF, Inc. owns all rights to Reasonable Doubt. The sale of this irreplaceable asset must be stopped before it is too late, and Dash must be held accountable for his theft …
‘The bottom line is simple: Dash can’t sell what he doesn’t own. By attempting such a sale, Dash has converted a corporate asset and has breached his fiduciary duties.’
According to the paperwork, Jay, Damon, and Kareem Burke each own a third of the shares in Roc-A-Fella. The document added: ‘Dash’s status [as] a minority shareholder in RAF, Inc., gives him no right to sell a company asset.’
The latest: Jay-Z, 51, is suing Damon Dash, 50, claiming Dash is attempting to sell the copyright to the rapper’s debut album Reasonable Doubt as a non-fungible digital token (NFT) but doesn’t have permission to do so
The complaint alleges that the producer has already minted the album — which launched Jay’s career when it was released in 1996 — as an NFT and is trying to sell it ‘as soon as possible.’
The documents were accompanied by SuperFarm’s announcement about selling the album.
They had written: ‘SuperFarm is proud to announce, in collaboration with Damon Dash, the auction of Damon’s ownership of the copyright to Jay-Z’s first album Reasonable Doubt. This marks a new milestone in the history of NFT’s, entitling the new owner to future revenue generated by the unique asset.
‘The monumental event will last for two days starting on June 23 and concluding on June 25. SuperFarm is excited to host this truly remarkable auction and immortalize one of the world’s greatest artists on the blockchain!’
Out and about: Jay-Z was snapped earlier this month at an NBA game in Brooklyn with wife Beyonce
Deal making: Dash told TMZ Sunday that he has been looking to sell his share of Roc-A-Fella
According to the documents, the auction was cancelled following a letter from Jay-Z’s legal team.
Dash told Page Six in response that he felt Jay-Z was ‘lying’ about the ownership of the material.
He said, ‘He lying. That’s a whole lie. Jay owns one-third of Reasonable Doubt. They just said that I tried to sell an NFT of Reasonable Doubt and … it’s not true.
‘I’m not running around to different places trying to auction off Reasonable Doubt. I’ve been working with one platform and that’s SuperFarm. And the thing is I own a third of Roc-A-Fella Records and I can sell my third if I feel like it.’
Dash said that Jay-Z had previously made him a lowball offer of $1.5 million for his Roc-A-Fella share.
‘That’s what corporate always does to the independent guy,’ he said. ‘It’s a case of corporate versus independent and how they try to bully me – but they are trying to bully the wrong one. It is the same f***ing game. It just seems like they so mad if I get money.
‘I don’t know why but why can’t I sell my third to who ever I want, whenever I want? I don’t have to ask.’
Retort: Dash said that ‘the real issue’ is that Jay-Z feels he can ‘compromise a man’s reputation for no reason’
Dash told TMZ Sunday that he has been looking to sell his share of Roc-A-Fella and that ‘under the terms of the deal with a potential buyer, the buyer would buy my share of Roc-A-Fella Records and Jay-Z will have exclusive administration rights.’
In his chat with Page Six, Dash said that ‘the real issue’ is that Jay-Z feels he can ‘compromise a man’s reputation for no reason.’
He continued: ‘He thinks Roc-A-Fella records is his – it is ours – and he’s doing all this on Roc-A-Fella’s behalf. He’s got “only one man to eat” syndrome and “everybody else got to work for him” syndrome and “kiss the ring and we’re gonna mess up his reputation” syndrome if you look under the hood. It continues to happen.’
Dash told the outlet that ‘it is f***ed up for one Black man to do that to another Black man in front of all these people and whoever believes that s*** is a sucker. I got a bridge I can sell you too.’