Beats Hit By $20 Million Lawsuit From MOG Founder David Hyman
Beats Electronics has been named in a lawsuit filed by David Hyman, the founder of online music subscription service MOG, which Beats bought in 2012. MOG becaame the basis for Beats Music which launched earlier this year. Hyman says he was deliberately fired who says that he was fired before he could receive the benefits of an incentive plan put in place after the purchase.
First reported by The Wrap, the llawsuit claims that Hyman was entitled to compensation including 2.5% percent of the company's “currently outstanding equity interests." 1% was due on the first anniversary of Hyman's date of employment with installments tpo follow. The suit also says that Hyman was promised 25% of the company's outstanding equity interests if its market exceeded $500 million.
All of Beats (including Beats Audio and Beats Music) is in the midst of a $3.4 billion acquisition by Apple.