The company would lie about their finances to lure in investors, after which they would take off with their money.
The New York Post’s Page Six has reported that rapper and business mogul, Jay Z, and his company Roc Nation, are suing a city licensing firm over accusations of them swindling investors in a “massive, years-long fraud.” In the Manhattan Supreme Court suit, Roc is alleging that Iconix Brand Group Inc. lured RN and other companies – including Ed Hardy and Ecko – into doing business with them under false pretenses. The firm apparently did so by lying about its financials to receive investment, after which they would disappear with their money without providing any of the promised services.
The feds have been investigating Iconix, which court documents reveal have “amass[ed] a portfolio of trademarks under false pretenses,” and detailed that they committed fraud by having “absconded with its licensees’ money without providing the branding and retail support it promised.” Jay’s Roc was in business with the firm after selling men’s clothing brand Rocawear to them for $204 million back in 2007. Though the company’s stocks were strong through 2015, the suit points out that, today, they are worth “less than a dollar per share.” The court documents also claim that “Plaintiffs never would have entangled their business interests with Iconix had it disclosed the true condition of its business or the massive accounting fraud in which it was engaged.” Roc believes that Iconix should be financially responsible for the legal costs that were incurred after Jay was forced to testify after the SEC subpoenaed him, as well as for other unspecified damages.
