Lyor Cohen
Encyclopedia
Lyor Cohen is the North American
Chairman and CEO
of Recorded Music for Warner Music Group
(WMG). He has been a pioneer in the development of hip hop
music and influential in the development of hip hop music acts, including Beastie Boys
, Foxy Brown, LL Cool J
, Jam Master Jay, Nas
, Run-D.M.C.
and others.
In addition, he has done various promotional work on behalf of rock musician Jon Bon Jovi
and the heavy metal band Slayer
, pop music singer Mariah Carey
and hip hop artists Sean Combs
and Jay-Z
.
Cohen joined the company shortly after Time Warner
's sale of WMG to an investor group led by Edgar Bronfman, Jr.
. Prior to his current role with Warner Music, he worked with The Island Def Jam Music Group
, where he led the growth of its roster of artists and record labels, including Def Jam Recordings
, Island Records
, Roc-A-Fella Records
, and Lost Highway Records. At WMG, in 2007, his division brought the company its highest U.S. album share in a decade and was credited with delivering the "most improved performance of a major music company" by the New York Post
. As head of WMG's recorded music division, Cohen has helped to transform the company's talent relationships by expanding the number of services it offers the artists on its roster and establishing a standardized, company-wide "360 deal."
According to The New York Times
, Cohen devised the now-standard record industry strategy of offering new releases at reduced price for the first week to boost sales on new albums.
, one of two sons of Israel
i immigrants and the grandson of an Israeli Army
general. Although born in New York City
, he spent little time there until later in life when he returned to Manhattan
for good in his mid-20s to work with Def Jam Recordings
' Russell Simmons
. Cohen was raised in the affluent Los Angeles
community of Los Feliz
after divorce led his mother to relocate there. He graduated from John Marshall High School
in Los Angeles and then the University of Miami
's School of Business, in Coral Gables, Florida
, where he majored in business.
Cohen has two half-brothers on his mother's side who have worked for Lyor at some point; both are also record label executives.
music business in the mid-1980s after booking a performance by seminal rappers Run-D.M.C.
at a club Cohen was running in Los Angeles. He soon became the group's road manager, sharing a room with MC Darryl McDaniels
(aka DMC) on the road. He began working in New York City for Def Jam's co-founder, Russell Simmons, in the early part of 1985, spearheading Rush Artist Management, the management division of Simmons' Def Jam/Rush operations and bringing a semblance of order to the often chaotic office shared by both the label and management.
Meanwhile, Cohen continued to act as Run-D.M.C.
's day-to-day and road and tour manager. He managed such tours as the 1986 Raising Hell Tour, (featuring Run-D.M.C.
, Whodini
, LL Cool J
, the Beastie Boys
and various guests such as Doug E. Fresh
) and the 1987 Together Forever Tour (featuring Run-D.M.C.
, the Beastie Boys
and occasional guests such as Public Enemy).
Over the years Cohen's influence grew, to the point where he personally earned $100 million from the sale of Def Jam Records to the Universal Music Group
(UMG) in 1999. He was then made head of a key part of UMG subsidiary, Island Def Jam, where he led the growth of its roster of artists and record labels, including Def Jam, Island Records
, Roc-A-Fella, Lost Highway, The Inc, American, and Def Soul (including Def Soul Classics and Roadrunner records) whose releases earned almost $700 million a year.
investor group-financed Warner Music Group, which was subsequently spun off from Time Warner. Joining Cohen at Warner are his former co-workers at Island Def Jam, Kevin Liles
and Julie Greenwald, as well as older industry figures including Elektra
founder Jac Holzman
and Sire Records
' Seymour Stein
.
) by Irv Gotti in recognition for his partnership and place on the board of directors when the two went into business together forming Murder Inc. Records (named after the original Murder Inc.). Cohen's Island Def Jam label provided Gotti $2 million in "seed" money to start operations and the label with office space in his Island Def Jam Manhattan headquarters. This later came under the scrutiny of federal authorities when Murder Inc. Records at Island Def Jam was raided by a joint task force of the NYPD and the FBI as part of a federal probe of label founder Irv Gotti's ties to drug lord Kenneth "Supreme" McGriff, alleged drug trafficking, money laundering
, and gang activities. Of particular interest to authorities was an Island Def Jam payment of $500,000 to a company fronted by McGriff called Picture Perfect Entertainment, ostensibly for the soundtrack (that was never delivered) to McGriff's film adaptation of Donald Goines
' Crime Partners which he had optioned.
Cohen was eventually absolved of any involvement in the scandal, even after he claimed under oath that he couldn’t identify his position with Murder Inc. Records. When asked if he sat with Gotti on the executive board of Murder Inc., Cohen replied, “I’m not sure.” Gotti, also since absolved of allegations, declined Cohen's offer to join him at Warner Music Group.
as part of a larger action against Island Def Jam Music Group and Universal Music Group
alleging that Cohen tried to hinder the production and release of an album by Ja Rule
's group, the Cash Money Click (a.k.a. CMC).Reid, Shaheem. (March 25, 2003). Def Jam, Lyor Cohen guilty of fraud. MTV. Retrieved 23-01-08. The defendants were initially ordered to pay TVT $132 million in compensatory and punitive damages, with $56 million due personally from Cohen, but on appeal that figure was reduced to $53 million, with $3 million due personally from Cohen. The U.S. District Court Judge who reduced the damages, Victor Marrero, commented that the defendants were "morally reprehensible" and noted "inconsistencies" in Cohen's testimony. However, in 2005 the jury's decision against Cohen and Def Jam was overturned by a federal appeals court panel of the Second Circuit Court of Appeals, which ruled that the allegations by TVT "lacked 'legally sufficient' evidence". While TVT lawyers announced intentions to pursue the matter further, Cohen's lawyer noted, "In reversing the finding of liability, fraud and the related damages, the court has specifically found that there was no credible evidence to support the outrageous claims against Mr. Cohen."
During the course of the appeals, additional controversy arose with the sale of the Phat Farm
clothing company. Cohen was partners with Russell Simmons
with a 16.6% stake in Phat Farm, which he had valued at $5.5 million in a financial statement during the TVT lawsuit. When the company sold for $140 million, Cohen reportedly received more than $20 million for his share, prompting allegations by TVT lawyers that he had intentionally misrepresented his net worth to reduce his damages owed. Simmons testified at deposition on Cohen's behalf that Cohen was not aware at the time he assessed his financial worth of the potential sale.
TVT was awarded $126,720 for a breach of contract claim that IDMG and Cohen did not appeal.
accused Cohen of "attempting to steal" best-selling R&B artists 112
from his Bad Boy Records
label, stating that he was "shocked" by such a move from "someone who I considered a close friend for 15 years". In 2003, Combs and Cohen announced a joint venture to handle 112 and Foxy Brown. At that time, Combs said that his personal relationship with Cohen mattered more "than a minor business dispute". In 2005, Combs and Cohen entered into a working relationship at Warner Music Group
.
North American
North American generally refers to an entity, people, group, or attribute of North America, especially of the United States and Canada together.-Culture:*North American English, a collective term used to describe American English and Canadian English...
Chairman and CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Recorded Music for Warner Music Group
Warner Music Group
Warner Music Group is the third largest business group and family of record labels in the recording industry, making it one of the big four record companies...
(WMG). He has been a pioneer in the development of hip hop
Hip hop
Hip hop is a form of musical expression and artistic culture that originated in African-American and Latino communities during the 1970s in New York City, specifically the Bronx. DJ Afrika Bambaataa outlined the four pillars of hip hop culture: MCing, DJing, breaking and graffiti writing...
music and influential in the development of hip hop music acts, including Beastie Boys
Beastie Boys
Beastie Boys are an American hip hop trio from New York City. The group consists of Mike D who plays the drums, MCA who plays the bass, and Ad-Rock who plays the guitar....
, Foxy Brown, LL Cool J
LL Cool J
James Todd Smith , better known as LL Cool J , is an American rapper, entrepreneur, and actor...
, Jam Master Jay, Nas
Nas
Nasir bin Olu Dara Jones, who performs under the name Nas , formerly Nasty Nas, is an American rapper and actor. He is regarded as one of the most important figures in hip hop and one of the most skilled and influential rappers of all-time...
, Run-D.M.C.
Run-D.M.C.
Run–D.M.C. was an American hip hop group from Hollis, in the Queens borough of New York City. Founded by Joseph "Run" Simmons, Darryl "D.M.C." McDaniels, and Jason "Jam-Master Jay" Mizell, the group is widely acknowledged as one of the most influential acts in the history of hip hop culture.Run–D.M.C...
and others.
In addition, he has done various promotional work on behalf of rock musician Jon Bon Jovi
Jon Bon Jovi
Jon Bon Jovi is an American musician, singer, songwriter, and actor, best known as the founder, occasional rhythm guitarist, and lead singer of rock band Bon Jovi, which was named after him...
and the heavy metal band Slayer
Slayer
Slayer is an American thrash metal band formed in Huntington Park, California, in 1981 by guitarists Jeff Hanneman and Kerry King. Slayer rose to fame with their 1986 release, Reign in Blood, and is credited as one of the "Big Four" thrash metal acts, along with Metallica, Megadeth and...
, pop music singer Mariah Carey
Mariah Carey
Mariah Carey is an American singer-songwriter, record producer, and actress. She made her recording debut with the release of her eponymous studio album in 1990, under the guidance of Columbia Records executive Tommy Mottola, whom she later married in 1993...
and hip hop artists Sean Combs
Sean Combs
Sean John Combs , also known by his stage names Diddy and P. Diddy, is an American rapper, singer, record producer, actor, and entrepreneur. He has won three Grammy Awards and two MTV Video Music Awards, and his clothing line earned a Council of Fashion Designers of America award. He was originally...
and Jay-Z
Jay-Z
Shawn Corey Carter , better known by his stage name Jay-Z, is an American rapper, record producer, entrepreneur, and occasional actor. He is one of the most financially successful hip hop artists and entrepreneurs in America, having a net worth of over $450 million as of 2010...
.
Cohen joined the company shortly after Time Warner
Time Warner
Time Warner is one of the world's largest media companies, headquartered in the Time Warner Center in New York City. Formerly two separate companies, Warner Communications, Inc...
's sale of WMG to an investor group led by Edgar Bronfman, Jr.
Edgar Bronfman, Jr.
Edgar Miles Bronfman, Jr. , is the Chairman of Warner Music Group. He previously served as CEO of the company from 2004 to 2011. In May, 2011, the sale of WMG was announced; Bronfman would continued as CEO in the transaction. In August 2011, he became Chairman of the company as Stephen Cooper...
. Prior to his current role with Warner Music, he worked with The Island Def Jam Music Group
The Island Def Jam Music Group
The Island Def Jam Motown Music Group, formerly The Island Def Jam Music Group, is an umbrella label formed in 1999 when Universal Music Group merged two of its daughter companies, Island Records and Def Jam Recordings, to create a label group. In 2011, Motown Records was split from the Universal...
, where he led the growth of its roster of artists and record labels, including Def Jam Recordings
Def Jam Recordings
Def Jam Recordings is an American record label, focused primarily on hip hop and urban music, owned by Universal Music Group, and operates as a part of The Island Def Jam Motown Music Group...
, Island Records
Island Records
Island Records is a record label that was founded by Chris Blackwell in Jamaica. It was based in the United Kingdom for many years and is now owned by Universal Music Group...
, Roc-A-Fella Records
Roc-A-Fella Records
Roc-A-Fella Records is a record label founded by Shawn "Jay-Z" Carter, Damon "Dame" Dash, and Kareem "Biggs" Burke. Today it operates as a subsidiary of Universal Music Group, and is distributed by Island Def Jam Motown Music Group.-Formation and Early Years:...
, and Lost Highway Records. At WMG, in 2007, his division brought the company its highest U.S. album share in a decade and was credited with delivering the "most improved performance of a major music company" by the New York Post
New York Post
The New York Post is the 13th-oldest newspaper published in the United States and is generally acknowledged as the oldest to have been published continuously as a daily, although – as is the case with most other papers – its publication has been periodically interrupted by labor actions...
. As head of WMG's recorded music division, Cohen has helped to transform the company's talent relationships by expanding the number of services it offers the artists on its roster and establishing a standardized, company-wide "360 deal."
According to The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
, Cohen devised the now-standard record industry strategy of offering new releases at reduced price for the first week to boost sales on new albums.
Early life
Cohen was born in New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, one of two sons of Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
i immigrants and the grandson of an Israeli Army
Israel Defense Forces
The Israel Defense Forces , commonly known in Israel by the Hebrew acronym Tzahal , are the military forces of the State of Israel. They consist of the ground forces, air force and navy. It is the sole military wing of the Israeli security forces, and has no civilian jurisdiction within Israel...
general. Although born in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, he spent little time there until later in life when he returned to Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
for good in his mid-20s to work with Def Jam Recordings
Def Jam Recordings
Def Jam Recordings is an American record label, focused primarily on hip hop and urban music, owned by Universal Music Group, and operates as a part of The Island Def Jam Motown Music Group...
' Russell Simmons
Russell Simmons
-External links:** * * * * * * from the US Holocaust Memorial Museum* *...
. Cohen was raised in the affluent Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
community of Los Feliz
Los Feliz, Los Angeles, California
Los Feliz, also Rancho Los Feliz is an affluent, hilly neighborhood in the Hollywood district of Los Angeles, California, named after its land grantee José Vicente Feliz....
after divorce led his mother to relocate there. He graduated from John Marshall High School
John Marshall High School (Los Angeles, California)
John Marshall High School is a high school located in the Los Feliz district of the City of Los Angeles at 3939 Tracy Street, in Los Angeles, California, USA.Marshall, which serves grades 9 through 12, is a part of the Los Angeles Unified School District...
in Los Angeles and then the University of Miami
University of Miami
The University of Miami is a private, non-sectarian university founded in 1925 with its main campus in Coral Gables, Florida, a medical campus in Miami city proper at Civic Center, and an oceanographic research facility on Virginia Key., the university currently enrolls 15,629 students in 12...
's School of Business, in Coral Gables, Florida
Coral Gables, Florida
Coral Gables is a city in Miami-Dade County, Florida, southwest of Downtown Miami, in the United States. The city is home to the University of Miami....
, where he majored in business.
Cohen has two half-brothers on his mother's side who have worked for Lyor at some point; both are also record label executives.
Run-D.M.C.
Cohen entered the hip hopHip hop
Hip hop is a form of musical expression and artistic culture that originated in African-American and Latino communities during the 1970s in New York City, specifically the Bronx. DJ Afrika Bambaataa outlined the four pillars of hip hop culture: MCing, DJing, breaking and graffiti writing...
music business in the mid-1980s after booking a performance by seminal rappers Run-D.M.C.
Run-D.M.C.
Run–D.M.C. was an American hip hop group from Hollis, in the Queens borough of New York City. Founded by Joseph "Run" Simmons, Darryl "D.M.C." McDaniels, and Jason "Jam-Master Jay" Mizell, the group is widely acknowledged as one of the most influential acts in the history of hip hop culture.Run–D.M.C...
at a club Cohen was running in Los Angeles. He soon became the group's road manager, sharing a room with MC Darryl McDaniels
Darryl McDaniels
-Video game appearances:*The Warriors - Scopes*Guitar Hero: Aerosmith - Himself- External links :* * * * * http://articles.latimes.com/2009/dec/12/entertainment/la-et-people-speak12-2009dec12...
(aka DMC) on the road. He began working in New York City for Def Jam's co-founder, Russell Simmons, in the early part of 1985, spearheading Rush Artist Management, the management division of Simmons' Def Jam/Rush operations and bringing a semblance of order to the often chaotic office shared by both the label and management.
Meanwhile, Cohen continued to act as Run-D.M.C.
Run-D.M.C.
Run–D.M.C. was an American hip hop group from Hollis, in the Queens borough of New York City. Founded by Joseph "Run" Simmons, Darryl "D.M.C." McDaniels, and Jason "Jam-Master Jay" Mizell, the group is widely acknowledged as one of the most influential acts in the history of hip hop culture.Run–D.M.C...
's day-to-day and road and tour manager. He managed such tours as the 1986 Raising Hell Tour, (featuring Run-D.M.C.
Run-D.M.C.
Run–D.M.C. was an American hip hop group from Hollis, in the Queens borough of New York City. Founded by Joseph "Run" Simmons, Darryl "D.M.C." McDaniels, and Jason "Jam-Master Jay" Mizell, the group is widely acknowledged as one of the most influential acts in the history of hip hop culture.Run–D.M.C...
, Whodini
Whodini
Whodini is a hip hop group that was formed in 1981. The Brooklyn, New York-based trio consisted of vocalist and main lyricist Jalil Hutchins; co-vocalist John Fletcher, aka Ecstasy ; and turntable artist DJ Drew Carter, aka Grandmaster Dee.-Early years:Whodini was among the first hip-hop groups to...
, LL Cool J
LL Cool J
James Todd Smith , better known as LL Cool J , is an American rapper, entrepreneur, and actor...
, the Beastie Boys
Beastie Boys
Beastie Boys are an American hip hop trio from New York City. The group consists of Mike D who plays the drums, MCA who plays the bass, and Ad-Rock who plays the guitar....
and various guests such as Doug E. Fresh
Doug E. Fresh
Douglas E. Davis , better known by the stage name Doug E. Fresh, is an American rapper, record producer, and beat boxer, also known as the Human Beat Box...
) and the 1987 Together Forever Tour (featuring Run-D.M.C.
Run-D.M.C.
Run–D.M.C. was an American hip hop group from Hollis, in the Queens borough of New York City. Founded by Joseph "Run" Simmons, Darryl "D.M.C." McDaniels, and Jason "Jam-Master Jay" Mizell, the group is widely acknowledged as one of the most influential acts in the history of hip hop culture.Run–D.M.C...
, the Beastie Boys
Beastie Boys
Beastie Boys are an American hip hop trio from New York City. The group consists of Mike D who plays the drums, MCA who plays the bass, and Ad-Rock who plays the guitar....
and occasional guests such as Public Enemy).
Def Jam Records
Cohen's first real public impact came with his creation of Rush Associated Labels in 1990. The label mostly served as an outlet for side-projects of Rush-managed acts like Jason Mizell's The Afros, but it also served a label for "baby bands"—acts that needed more time to develop than Def Jam would be able to afford them—to organically grow at their own pace.Over the years Cohen's influence grew, to the point where he personally earned $100 million from the sale of Def Jam Records to the Universal Music Group
Universal Music Group
Universal Music Group is an American music group, the largest of the "big four" record companies by its commanding market share and its multitude of global operations...
(UMG) in 1999. He was then made head of a key part of UMG subsidiary, Island Def Jam, where he led the growth of its roster of artists and record labels, including Def Jam, Island Records
Island Records
Island Records is a record label that was founded by Chris Blackwell in Jamaica. It was based in the United Kingdom for many years and is now owned by Universal Music Group...
, Roc-A-Fella, Lost Highway, The Inc, American, and Def Soul (including Def Soul Classics and Roadrunner records) whose releases earned almost $700 million a year.
Warner Music Group
Cohen left IDJ/UMG in January 2004 for a position with the Edgar Bronfman, Jr.Edgar Bronfman, Jr.
Edgar Miles Bronfman, Jr. , is the Chairman of Warner Music Group. He previously served as CEO of the company from 2004 to 2011. In May, 2011, the sale of WMG was announced; Bronfman would continued as CEO in the transaction. In August 2011, he became Chairman of the company as Stephen Cooper...
investor group-financed Warner Music Group, which was subsequently spun off from Time Warner. Joining Cohen at Warner are his former co-workers at Island Def Jam, Kevin Liles
Kevin Liles
Kevin Liles is an American record executive. Liles was president of Def Jam Recordings and executive vice president of The Island Def Jam Music Group from 1999 to 2004...
and Julie Greenwald, as well as older industry figures including Elektra
Elektra Records
Elektra Records is an American record label owned by Warner Music Group. In 2004, it was consolidated into WMG's Atlantic Records Group. After five years of dormancy, the label was revived by Atlantic in 2009....
founder Jac Holzman
Jac Holzman
Jac Holzman was the founder, chief executive officer and head of both Elektra Records and Nonesuch Records.-Biography:He founded Elektra Records in his St. John's College dorm room in 1950 and Nonesuch Records in 1964...
and Sire Records
Sire Records
Sire Records is an American record label, owned by Warner Music Group and distributed through Warner Bros. Records.-Beginnings:The label was founded in 1966 as Sire Productions by Seymour Stein and Richard Gottehrer, each investing ten thousand dollars into the new company. Its early releases as a...
' Seymour Stein
Seymour Stein
Seymour Stein is an entrepreneur in the music industry who has been a part of the business since getting his first job as a clerk for Billboard magazine in 1958. Stein is a vice president of Warner Bros...
.
Murder Inc. Records raid
In 2001, Cohen was given the nickname "Lansky" (after the notorious Jewish gangster Meyer LanskyMeyer Lansky
Meyer Lansky , known as the "Mob's Accountant", was a Polish-born American organized crime figure who, along with his associate Charles "Lucky" Luciano, was instrumental in the development of the "National Crime Syndicate" in the United States...
) by Irv Gotti in recognition for his partnership and place on the board of directors when the two went into business together forming Murder Inc. Records (named after the original Murder Inc.). Cohen's Island Def Jam label provided Gotti $2 million in "seed" money to start operations and the label with office space in his Island Def Jam Manhattan headquarters. This later came under the scrutiny of federal authorities when Murder Inc. Records at Island Def Jam was raided by a joint task force of the NYPD and the FBI as part of a federal probe of label founder Irv Gotti's ties to drug lord Kenneth "Supreme" McGriff, alleged drug trafficking, money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
, and gang activities. Of particular interest to authorities was an Island Def Jam payment of $500,000 to a company fronted by McGriff called Picture Perfect Entertainment, ostensibly for the soundtrack (that was never delivered) to McGriff's film adaptation of Donald Goines
Donald Goines
Donald Goines was an African American writer of urban fiction. His novels were deeply influenced by the work of Iceberg Slim.-Life:...
' Crime Partners which he had optioned.
Cohen was eventually absolved of any involvement in the scandal, even after he claimed under oath that he couldn’t identify his position with Murder Inc. Records. When asked if he sat with Gotti on the executive board of Murder Inc., Cohen replied, “I’m not sure.” Gotti, also since absolved of allegations, declined Cohen's offer to join him at Warner Music Group.
TVT Records lawsuit
In 2002, Cohen was personally sued for fraud, tortious interference, breach of contract and copyright infringement by TVT RecordsTVT Records
TVT Records was an independent US record label founded by Steve Gottlieb. Over the course of its 25 year history the label released some 25 Gold, Platinum and Multi-platinum releases. Its roster included Nine Inch Nails, Ja Rule, Lil Jon, Underworld, The KLF, Sevendust, Brian Jonestown Massacre and...
as part of a larger action against Island Def Jam Music Group and Universal Music Group
Universal Music Group
Universal Music Group is an American music group, the largest of the "big four" record companies by its commanding market share and its multitude of global operations...
alleging that Cohen tried to hinder the production and release of an album by Ja Rule
Ja Rule
Jeffrey Atkins , better known by his stage name Ja Rule, is an American rapper, singer, and actor.Born in Hollis, Queens, he began his career in the group Cash Money Click and debuted in 1999 with Venni Vetti Vecci and its single "Holla Holla"...
's group, the Cash Money Click (a.k.a. CMC).Reid, Shaheem. (March 25, 2003). Def Jam, Lyor Cohen guilty of fraud. MTV. Retrieved 23-01-08. The defendants were initially ordered to pay TVT $132 million in compensatory and punitive damages, with $56 million due personally from Cohen, but on appeal that figure was reduced to $53 million, with $3 million due personally from Cohen. The U.S. District Court Judge who reduced the damages, Victor Marrero, commented that the defendants were "morally reprehensible" and noted "inconsistencies" in Cohen's testimony. However, in 2005 the jury's decision against Cohen and Def Jam was overturned by a federal appeals court panel of the Second Circuit Court of Appeals, which ruled that the allegations by TVT "lacked 'legally sufficient' evidence". While TVT lawyers announced intentions to pursue the matter further, Cohen's lawyer noted, "In reversing the finding of liability, fraud and the related damages, the court has specifically found that there was no credible evidence to support the outrageous claims against Mr. Cohen."
During the course of the appeals, additional controversy arose with the sale of the Phat Farm
Phat Farm
Phat Farm is a national fashion line created by the vision of Russell Simmons, the founder of the modern day hip-hop movement, Phat Farm, a division of Phat Fashions , is symbol of men's contemporary American culture, mixing the urban aesthetics of the streets and the preppy culture of the Ivy...
clothing company. Cohen was partners with Russell Simmons
Russell Simmons
-External links:** * * * * * * from the US Holocaust Memorial Museum* *...
with a 16.6% stake in Phat Farm, which he had valued at $5.5 million in a financial statement during the TVT lawsuit. When the company sold for $140 million, Cohen reportedly received more than $20 million for his share, prompting allegations by TVT lawyers that he had intentionally misrepresented his net worth to reduce his damages owed. Simmons testified at deposition on Cohen's behalf that Cohen was not aware at the time he assessed his financial worth of the potential sale.
TVT was awarded $126,720 for a breach of contract claim that IDMG and Cohen did not appeal.
P. Diddy
In 2002, Sean "P Diddy" CombsSean Combs
Sean John Combs , also known by his stage names Diddy and P. Diddy, is an American rapper, singer, record producer, actor, and entrepreneur. He has won three Grammy Awards and two MTV Video Music Awards, and his clothing line earned a Council of Fashion Designers of America award. He was originally...
accused Cohen of "attempting to steal" best-selling R&B artists 112
112 (band)
112 is an American R&B quartet from Atlanta, Georgia. Formerly artists on Diddy's Bad Boy Records, the group signed to the Def Soul roster in 2002. They had great success in the late 1990s and early 2000s with hits such as "Only You", "Anywhere" and "Peaches & Cream"...
from his Bad Boy Records
Bad Boy Records
Bad Boy Records is a record label founded in 1993 by producer/rapper/entrepreneur Sean "Diddy" Combs. Today it operates as a subsidiary of Warner Music Group, and is distributed by Atlantic Records.-Beginnings:...
label, stating that he was "shocked" by such a move from "someone who I considered a close friend for 15 years". In 2003, Combs and Cohen announced a joint venture to handle 112 and Foxy Brown. At that time, Combs said that his personal relationship with Cohen mattered more "than a minor business dispute". In 2005, Combs and Cohen entered into a working relationship at Warner Music Group
Warner Music Group
Warner Music Group is the third largest business group and family of record labels in the recording industry, making it one of the big four record companies...
.
Further reading
- Talking trash, making cash, and still able to sign Mariah. Profile at The New York TimesThe New York TimesThe New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
- Musical Marvel The New York Post