Damon Dash’s Roc-A-Fella Stake Will Be Auctioned
Roc-A-Fella label owners JAY-Z and Kareem “Biggs” Burke may have a new partner as a judge has ordered Damon Dash’s 33.3% stake in the label to be auctioned off to satisfy a debt owed by the Harlem businessman.
According to Billboard, an auction is scheduled for Aug. 29 in New York City for the one-third stake Dash has in the label, which includes the master recording of JAY-Z’s debut album, “Reasonable Doubt.” The judge ordered the sale of Dash’s stake due to non-payment of a $823,000 judgment due to movie producer Josh Webber.
Webber previously won a defamation and copyright infringement lawsuit against Dash after a dispute over the 2016 film Dear Frank. JAY-Z and Biggs objected to the ruling, citing the bylaws that mandate approval from the board of directors to sell off shares. U.S. Magistrate Robert W. Lehrburger ignored their plea and ruled that Dash’s one-third ownership of Roc-A-Fella is personal property that can be seized to satisfy the judgment against him.
Based on federal court filings, the United States Marshals Service will oversee the auction at a Midtown Manhattan hotel. Any potential buyers must bid, at minimum, $1.2 million. They would also be required to post a $240,000 deposit for the right to participate in the sale.
A source told Billboard that, although a potential buyer will own an equal share of the company, due to a majority vote, they will most likely be unable to make business decisions without the approval of their new partners.
“Whomever buys Dame’s stake in Roc-A-Fella will be a minority owner without authority over any decision-making. They won’t have the ability to sell the copyright or borrow against the master as all decisions require majority vote,” The Source, reported.
Webber’s attorney, Chris Brown, will coordinate the upcoming auction.
In July, Dash made a last-ditch effort to sell his stake to satisfy the judgment against him.
The auction will help satisfy another debt for Dash. The New York City Department of Social Services (NYCDSS) will collect money owed to them before Webber can get the money for his judgment. The entertainment executive owes $145,096 in unpaid child support to Rachel Roy for his two daughters and to Cindy Morales for his son.
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