When Warner Music Group fired Doug Morris in 1995, the their former chief executive filed a $50 million wrongful termination lawsuit. In court proceedings, WMG alleged that Atlantic Records, one of the labels under Morris’ supervision, regularly sold CD's off the books to music distributors and retailers and pocketed the money. The practice, know as selling 'cleans,' allegedly cheated the company, musicians and songwriters out of millions of dollars.
3 years later, Morris is reportedly close to signing and deal with WMG for his new label 12 Tone, according to multiple sources. “Why would Warner hire a guy they had fired for cause?” an industry veteran told Page 6. “How do these people get away with it?”
While WMG and Morris have not commented, so far.