HTC is being sued by Monster, the company which originally created Beats headphones with Dr Dre and Jimmy Iovine, claiming the mobile maker committed fraud when it helped Dre and Iovine by out the brand.
Monster is collectively suing Apple–owned Beats and HTC, as well as Dre and Iovine. It says that fraud was committed when HTC invested in Beats, allowing Dre and Iovine to repurchase enough stock to buyout their headphone brand via an ownership clause in their original contract with Monster.
Monster also reckons that Beats was lying when it said in September 2013 that it was not expecting a major transaction for the company within the next two years. Apple paid $3 billion for Beats in summer 2014, meaning Monster missed out on a big payday.
The legal filing suggests Monster’s chief Noel Lee would not have cut his Beats stake if he had known about an impending hook–up with Apple.
HTC has yet to respond to the allegations and neither has Beats. The latter, now an Apple subsidiary, will likely be able to call on Cupertino’s powerful legal team to defend itself.
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