Edgar Bronfman, Jr.’s Warner Music Group may not be close to settling its disagreement with YouTube over music video revenue but at least he’s out from under a $100 million lawsuit.
The lawsuit, a hangover from the $2.6 billion leveraged buyout of the music company from Time Warner in 2004, was filed by former Simon & Schuster CEO Richard Snyder in 2007. Snyder claimed he wasn’t compensated properly for his role in bringing investment bankers to the deal and sued Bronfman personally. But the New York Supreme Court disagreed, dismissing the case Tuesday and ordering Snyder to cover the court costs. Warner CEO Bronfman said Snyder’s role was exaggerated. The court cited a statute (pdf, page 58) that voids oral agreements to compensate for negotiations.
“Today’s decision confirmed what we have said all along ? that Dick Snyder’s claims were nothing more than a work of fiction,” Mr. Bronfman’s attorney, Orin Snyder, said in a statement.