ORLANDO, Fla. (AP) - After months of rancorous legal maneuvering, 'N
Sync and its former promoter on Wednesday settled a lawsuit that
allows the multiplatinum singing group to keep its name while
changing record companies. Details on the out-of-court settlement
between 'N Sync and Lou Pearlman were not disclosed. The settlement
allows 'N Sync to keep its name and leave a record deal Pearlman
negotiated for them with BMG Entertainment, based in Germany, and go
to another record company, Zomba Group's Jive Records, home to fellow
teen pop acts, The Backstreet Boys and Britney Spears. Under the
settlement, Pearlman's company, Trans Continental Group, will receive
future compensation from 'N Sync. Zomba also will continue a
distribution agreement with BMG, the No. 2-ranked music company in
the U.S. market based on current sales.
"All parties involved are extremely pleased," 'N Sync said in a joint
statement with Trans Continental. Pearlman had been seeking $150
million in his breach-of-contract suit filed in U.S. District Court
in Orlando. 'N Sync won the first round of the legal battle in
November when a federal judge refused to issue an injunction barring
the group from using their name and releasing their next album under
the 'N Sync name. 'N Sync had claimed that Pearlman and Trans
Continental cheated them out of earnings and royalties and failed to
sign them to a U.S. record company. Pearlman "was an unscrupulous,
greedy and sophisticated businessman who posed as an unselfish,
loving father figure and took advantage of our trust," 'N Sync member
J.C. Chasez said in a court filing last month. See
http://www.infobeat.com/stories/cgi/story.cgi?id=2562915809-d14
