Valory and Smith Sued by Schon and Cain Mar. 2020
Posted: Wed Mar 04, 2020 3:57 pmhttps://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.
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.
