Published in The Orlando Sentinel on December 30, 1999 .
The year's biggest music-industry lawsuit, one with huge implications for an
Orlando boy singing group and an Orlando-based record and media company,
ended Wednesday with an out-of-court settlement.
Bertelsman Music Group and Orlando's Trans Continental Records settled their
$150 million breach of contract suit with 'N Sync and Jive Records. 'N Sync's
$25 million countersuit against Trans Continental and its founder, Louis J.
Pearlman, was also settled out of court.
"All parties involved are extremely pleased with the speedy resolution of
this matter," the parties said in a prepared statement.
Neither side would comment on the terms of the agreement.
The Zomba Group, which owns Jive Records, will be able to release 'N Sync's
new album, No Strings Attached, on March 7. Zomba has also extended its
current distribution agreement with BMG, a German company, in return for
BMG's giving up its rights to record 'N Sync.
Last September, 'N Sync, a vocal quintet formed in Orlando, broke its
contract with BMG to sign with Jive, the label that is also home to The
Backstreet Boys and Britney Spears. BMG, Trans Continental and Pearlman sued
the group and Zomba-Jive for breach of contract. 'N Sync countersued,
alleging that Pearlman and Trans Continental had cheated the group out of
royalties.
Pearlman tried to prevent the band from using the name 'N Sync and from
releasing its new album. But when the parties had their first day in federal
court in Orlando last month, Judge Anne C. Conway denied the injunction. That
set the stage for Wednesday's settlement.
Some observers of the closed world of the music business considered the
lawsuit a family squabble, because BMG was already the North American
distributor for Zomba's various record labels, and Zomba President Clive
Calder had been talking about ending that arrangement.
Wednesday's settlement appears to continue to give BMG and Trans Continental
a piece of 'N Sync's business under Jive.
A similar settlement was reached between Trans Continental and The Backstreet
Boys, a previous Pearlman-launched group, in 1998.
