There were lawyers. There were mediators. Most importantly, there was a
lot of money. And now, there's a settlement.
After weeks of negotiating, the popsters of 'N Sync have reached an
agreement with their Svengali-esque ex-manager, Louis Pearlman, and their
former record company, BMG Entertainment, derailing the multimillion-dollar
dueling lawsuits between the two sides.
"The suit has been settled," an 'N Sync spokesperson said. "The new album
will be out sometime in March on Jive Records. There are no strings
attached."
Financial terms of the settlement were not disclosed and representatives
Pearlman and BMG could not immediately be reached for comment.
The purported deal effectively ends $175 million-plus worth of bad blood
between the boy band and their former manager and label. Back in October,
Pearlman, who fancied himself a father figure for the group, filed a $150
million breach-of-contract suit against 'N Sync, saying the band illegally
fired him and jumped from the BMG-owned RCA Records to Jive Records, the
label behind fellow teen sensations Britney Spears and the Backstreet Boys.
The following month, the 'N Syncers (and a couple of their moms) hit
back. They filed a $25 million countersuit against Pearlman and his
management company citing fraud, breach of contract and breach of fiduciary
duty.
A few weeks later, a federal judge in the band's native Orlando declined
to issue an injunction that would have blocked 'N Sync from recording for
Jive, clearing the way for the group to release their next album on their
new label next year--a major setback for the Pearlman-BMG camp. The judge's
decision likely expedited settlement talks.
