The Securities and Exchange Commission wants rapper Jay-Z to appear in court and testify about his joint venture with Iconix Brand Group, Inc.
SEC is currently investigating Iconix for possible securities law violations involving Rocawear, the clothing and lifestyle brand founded by the rapper. Iconix acquired assets associated with Rocawear in 2007 for $200 million.
According to reports, the 48-year-old musician ignored two subpoenas sent to him that was related to the inquiry. SEC has been investigating Iconix since 2015.
U.S. Judge Paul Gardephe ordered Jay-Z to appear in court on Tuesday, May 8, to explain why he did not testify.
Jay-Z Denies Connection To Iconix
"Mr. Carter had no role in [Iconix's financial] reporting or Iconix's other actions as a public company," said a representative of the rapper to CNBC. "Mr. Carter is a private citizen who should not be involved in this matter."
Jay-Z, whose real name is Shawn Carter, has a slew of other businesses. He also owns Tidal, the online music streaming platform, and Roc Nation, an entertainment company.
"The application does not reflect a determination by the SEC or its staff that Carter has violated provisions of the federal securities laws at issue in the investigation," assured a press release from the SEC.
If Jay-Z continues to ignore the requests for his appearances in court, he will have to appear in front of the SEC on May 11, Friday to issue a testimony. If he doesn't show up again, Jay-Z may be held in civil contempt by the court, with possible monetary sanctions and incarceration, until he complies with the subpoenas, explained Forbes.
Legal Battles
The Hollywood Reporter noted that Alexander Spiro, the hip-hop mogul's lawyer, is representing him in a legal dispute against Iconix that started last year. The licensing company claims that Roc Nation "undermined" their previous agreement by releasing a series of baseball caps.
Iconix claimed that they paid $204 million in 2007 to acquire certain intellectual property from Roc Nation.
Reuters also reported that a Scandinavian law firm and a financial institution filed a lawsuit against the father of three over unpaid fees incurred from the purchase of Tidal in 2015.
Tidal is also co-owned by Beyonce, Rihanna, and Madonna.
The lawsuit filed on Thursday, May 3, claims that S. Carter Enterprise, the parent company owned by the rapper, hired the two companies to aid in the purchase of the subscription streaming service from Aspiro AB and that Jay-Z and S. Carter Enterprise still owe $598,383.
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