50 Cent Loses Lawsuit; Must Pay $16 Million to Headphone Company
Rapper 50 Cent‘s $500 million net worth took a hit this week when a judge ruled in favor of Sleek headphones, claiming Fiddy stole their design for his own line.
According to reports, 50 Cent had began a partnership with Sleek headphones to market their design and after paying $1 million to get the ball rolling, the deal fell through. Soon after, the rapper began marketing his own line, Sync by 50, which used the same design and mechanics.
Of course, Fiddy is claiming that he didn’t steal the design and instead used his professional experience to build the headphones, which coincidentally shared the same mechanics. But it didn’t end there.
Sleek is also alleging that 50 Cent and his partners stole thousands of names from a private client list that “disappeared” once the deal fell through.
For these reasons, Sleek sued for “misappropriating trade secrets, breaching his fiduciary duty owed to Sleek, participating in a civil conspiracy, breaching his confidentiality agreement with Sleek, and being unjustly enriched.” In a counter-suit, the rapper alleges that Sleek “fraudulently induced him into entering into an investment with them and breaching their fiduciary duties to him.”
Last May, an arbitrator sided with Sleek, awarding them $11,693,247 in damages plus $4,488,331 in attorney’s fees. Since then, 50 Cent has been fighting to keep from paying the attorney fees, but the arbitrator has finalized the deal and 50 Cent must pay all $16 million.
The final court documents sides with Sleek, saying, “Thus the arbitrator can sympathize with Jackson’s growing frustration that he was putting money into Sleek and not, in his opinion, seeing the results that he assumed would be forthcoming on a timely basis. Likewise, the arbitrator can appreciate the [Sleek team’s] frustration with what they perceived to be Jackson’s team taking control of their company … However, Jackson’s frustrations do not justify the actions he took or were taken on his behalf.”
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