Valory and Smith Sued by Schon and Cain Mar. 2020

[indigo]

https://finance.yahoo.com/news/miller-b ... 00343.html

The Complaint, filed by Miller Barondess, LLP in California Superior Court, accuses defendants Smith and Valory of sowing discord among the band members by engaging in self-dealing and selfishly putting their interests ahead of the band’s. The lawsuit seeks to enjoin a scheme by defendants to possess the rights to the Journey name and be paid without actually performing, and also seeks damages in excess of $10 million. If Smith and Valory had been successful it would have brought an end to a legendary band that has brought so much joy to millions of people all over the world. Given the circumstances Schon and Cain were left with no alternative but to take decisive action for themselves and Journey’s fans.

In 1998, Schon, Cain and Perry entered into a written agreement providing Schon and Cain the sole, exclusive, irrevocable right to control the Journey Mark, including the Journey name. They are, therefore, authorized to perform together as Journey, with or without anyone else.

Defendants Smith and Valory were members of Journey at various times during the band’s history. Collectively, they only have a very few song credits on Journey albums. Nevertheless, they were compensated generously for many years.

Recently, however, defendants attempted to launch an ill-conceived corporate coup d'état to assume control of Nightmare Productions because they incorrectly believe that Nightmare Productions controls the Journey name and Mark. They hope that, by taking over Nightmare Productions, they can hold the Journey name hostage and set themselves up with a guaranteed income stream after they stop performing. Smith and Valory began their campaign to take control of Nightmare Productions in December 2019 by conspiring to oust Schon and Cain from control.

As detailed in the Complaint, their campaign culminated on February 13, 2020, when Smith and Valory held improper shareholder and Board of Directors meetings of Nightmare Productions. During those meetings, the defendants and their allies voted to give Smith and Valory control of the Board, removing Cain as President and replacing him with Smith, and removing Schon as Secretary and replacing him with Valory.

With control of Nightmare Productions, per the Complaint, Smith and Valory incorrectly believe they can seize control of the Journey name and force Schon, Cain and Nightmare Productions to provide them with wind-fall payments after their retirement; they want to be paid a share of Journey touring revenue in perpetuity under the guise of a licensing fee while they perform absolutely no work for the band.

[Sighlence]

What a shit show....

[scarab]

Neal wants Jon out, and now Smith and Valory suing, hmm.
Hoping this is an early April food joke.

All I know with She-devil and Gate Crasher wives, this will be fought vigorously.

All I can say is pray for Arnel, he doesnt need this crap.

[perryswoman]

Seems like Neal can’t get along with anyone

[Onestepper]

What a complete and utter mess that band has become. Also never really thought Smith had it in him.

I'm sure there is much more to the story.

[FamilyMan]

Odds on Deen returning?

[The_Noble_Cause]

Neal and Cain seem to be OK with each other. Schon even now retweets Cain's tweets. Plus, they celebrated a birthday together in Vegas. For a while there, Schon wouldn't even mention Cain by name.

As for this lawsuit...wow. Schon was trying to get Smith back in the band for a long time. What a turn of events!

If the details are true, about Ross and Smitty, holding secretive shareholder meetings, then they probably deserve to be shit-canned. Bring back Deeno!

[Sighlence]

Seems like Neal can’t get along with anyone

Pretty soon it'll be just him. No wonder Perry wants nothing to do with them.

[perryfan61]

I'm shocked!! I can't believe Smitty and Ross would try to pull a stunt like this! If this is true, then that's it for the band, IMHO. I guess Neal could ask Deen to come back, and replace Ross with someone else, but I don't know if Arnel is up for another tour anyway. Maybe it's time to retire.....except Neal has lots of alimony still to pay, and a wife who is draining the bank account, so who knows what will happen.

[Onestepper]

I'm shocked!! I can't believe Smitty and Ross would try to pull a stunt like this! If this is true, then that's it for the band, IMHO. I guess Neal could ask Deen to come back, and replace Ross with someone else, but I don't know if Arnel is up for another tour anyway. Maybe it's time to retire.....except Neal has lots of alimony still to pay, and a wife who is draining the bank account, so who knows what will happen.

I had not heard that Arnel wasn't up for or able to do another tour. But replacing Smith with Deen, and Ross with just about any other bassist out there wouldn't be that tough of a move.

I just can't seen NS and JC letting something like this stop the gravy train. Stranger things have happened though.

[ebake02]

This sure was a shocker, I wonder who ratted them out if it’s true. Ross and Steve probably thought they could take advantage Neal and Jon’s bickering over the last couple years. They need to bring back Randy on bass and either Omar or Deeno on drums since their already somewhat familiar with the material. Expecting two brand new people to learn the dirty dozen front to back in only two months before a tour is a tall order.

[Loneman1]

Such a damn mess.

I could see asking Deen back, and Neal alone knows a good number of bassists that could fill in without too much notice I'm guessing, like Marco Mendoza for example. It is just sad to see all the bullshit that always surrounds this band. Gonna miss Smith since he is my favorite drummer ever and loved his playing with them, but this isn't a smart move. I've been saying it for awhile along with many others, but as much as I love the band, the writing has been on the wall for a looooong time now......

[Eric]

I can’t help but be excited about this. This band needed a shakeup. It’s sounds troubling how it’s gone down... I get that. But this band has been without a heartbeat since Smith came back. Now it sounds like he and Valory just don’t want to work anymore. If Schon and Cain are back on track then just bring Deen-O back and they can be an active band again. Valory? Eh, whatever.

[The_Noble_Cause]

I can’t help but be excited about this. This band needed a shakeup. It’s sounds troubling how it’s gone down... I get that. But this band has been without a heartbeat since Smith came back. Now it sounds like he and Valory just don’t want to work anymore. If Schon and Cain are back on track then just bring Deen-O back and they can be an active band again. Valory? Eh, whatever.

Well said!

[ebake02]

I find it a little odd too that the band and none of the parties involved have breathed a single word about this dumpster fire or have issued any sort of statement. The only info everybody has is third hand.

[Arkansas]

Really hard to believe. Is this an early April Fool's joke?


later~

[SoonerThunder]

Contracts and lawyers, champagne downtown

If this is true I don’t blame Neal and Jon one bit. I trust lawyers about as much as politicians so I do want to hear Ross and Steve’s side

[Arkansas]

Btw, this is interesting. I guess this explains how Perry has been on the payroll without being in the band. As long as NS or JC are active as Journey, SP is one-third owner of the trademark.
If so, there's probably another supporting agreement that defines compensation.

In 1985, pursuant to a Trademark License Agreement, Nightmare Productions, Inc., one of the band’s corporate entities, provided an exclusive, irrevocable license of the Journey Mark to Schon, Cain and Perry. Under the Trademark License Agreement, the license continues "until the date upon which none of Stephen Perry, Neal Joseph Schon, or Jonathan Cain is actively engaged in a professional music career utilizing the name "‘JOURNEY.’"

Sounds like RV & SS wanted a piece of that pie too.


later~

[ebake02]

Btw, this is interesting. I guess this explains how Perry has been on the payroll without being in the band. As long as NS or JC are active as Journey, SP is one-third owner of the trademark.
If so, there's probably another supporting agreement that defines compensation.

In 1985, pursuant to a Trademark License Agreement, Nightmare Productions, Inc., one of the band’s corporate entities, provided an exclusive, irrevocable license of the Journey Mark to Schon, Cain and Perry. Under the Trademark License Agreement, the license continues "until the date upon which none of Stephen Perry, Neal Joseph Schon, or Jonathan Cain is actively engaged in a professional music career utilizing the name "‘JOURNEY.’"

Sounds like RV & SS wanted a piece of that pie too.


later~

I’m surprised that Ross didn’t already considering he’s a founding member.

[onmyjrny]

Something smells fishy to me in all this. I just don't see Smith or Valory trying to pull a stunt as dumb as this. No way they could have ever pulled it off even if it wasn't stopped. Gotta be something else to it. Maybe a publicity stunt? Trying to drum up more ticket sales or get out of the contract they have currently.

[The_Noble_Cause]

Something smells fishy to me in all this. I just don't see Smith or Valory trying to pull a stunt as dumb as this. No way they could have ever pulled it off even if it wasn't stopped. Gotta be something else to it. Maybe a publicity stunt? Trying to drum up more ticket sales or get out of the contract they have currently.

The actual legal documents are pretty convincing - includes specific details including dates of meetings etc.

[onmyjrny]

Something smells fishy to me in all this. I just don't see Smith or Valory trying to pull a stunt as dumb as this. No way they could have ever pulled it off even if it wasn't stopped. Gotta be something else to it. Maybe a publicity stunt? Trying to drum up more ticket sales or get out of the contract they have currently.

The actual legal documents are pretty convincing - includes specific details including dates of meetings etc.

It's crazy if it's true. I always saw these two as the obedient, go with the flow types.

From the complaint: 46. Smith and Valory’s coup drove a dagger between band members. Smith and
24 Valory have placed their own greed before the interests of the band, sowing discontent and
25 discord, jeopardizing the future ofJourney. A band can only perform, tour successfully and
26 succeed creatively ifit remains united and the band members trust and respect one another. Smith
27 and Valory shattered the existing rapport and chemistry of the band.

[indigo]

https://mms.businesswire.com/media/2020 ... download=1

Jump to pg.23 to read up on the Elmo Agreement. Some interesting things that regulated what the band could do and not do after Perry left.

[perryswoman]

And looks like Steve and Herbie both voted in Steve and Ross behalf. Lol! Guess there won’t be no coffee with he and Neal

[perryswoman]

Dam! Perry had quite the attorney. No wonder he never wants to go back to this shit show and still gets paid ha ha

[Loneman1]

https://mms.businesswire.com/media/20200303006138/en/777460/1/Complaint+-+Journey+%281%29.pdf?download=1

Jump to pg.23 to read up on the Elmo Agreement. Some interesting things that regulated what the band could do and not do after Perry left.

Interesting read.....thanks for that link!!

[The_Noble_Cause]

This entire thing is fascinating. I know Schon had hoped for Smitty to record with the band. So much for that dream. Maybe the new bassist and drummer will light a fire under Cain's ass to record a new album.

[caricalvados]

Well, now that the financial agreements out the open, time to void those NDA's and write a band biography.

[Abitaman]

https://www.rollingstone.com/music/musi ... it-962246/

[LTS]

got to love TMZ .. "Russ" Valory

https://www.tmz.com/2020/03/04/journey- ... s-lawsuit/