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Posted in music on October 16, 2013
The small organization behind [CMJ] is facing a lawsuit of nearly $1 million over a failed merger.Meanwhile, CMJ continues today (10/16) with day shows and night shows. You can check out our list of 30 artists to see at CMJ and browse our CMJ tag for more.
The case has its origins in a deal announced four years ago by CMJ and its founder, Robert K. Haber, to merge with Metropolitan Entertainment, led by the veteran New York concert promoter John Scher. The men said they had plans for CMJ tours and other joint programs, but the deal, which valued CMJ at $2.4 million, was never completed. According to a lawsuit filed by Mr. Scher in May, relations between the companies broke down.
In his suit, filed in New York State Supreme Court in Manhattan, Mr. Scher says that CMJ has failed to repay nearly $600,000 in loans that Metropolitan made in 2009 and 2010 to help keep the festival afloat. With interest, that debt is now nearly $800,000, the suit says. It also seeks $99,000 in other fees as well as repayment of legal expenses.