SLY STONE SUES FORMER MANAGER JERRY GOLDSTEIN FOR DAMAGES OF $50 MILLION FOR CONVERTING OR MISAPPROPRIATING SLY STONE’S ROYALTIES

LOS ANGELES – Legendary funk artist Sly Stone filed a lawsuit in Los Angeles Superior Court today on the eve of the Grammys charging his former manager Jerry Goldstein with fraud, breach of contract, breach of fiduciary duty, and conversion for diverting, converting and misappropriating his royalties and assets for over 20 years. The suit demands a full accounting from royalty collection companies to determine actual amounts taken but they are estimated to be in the $20-30 million range. The suit also seeks punitive damages. Named as co-defendants in the case is a myriad of Goldstein-controlled companies and collaborators that he used to assist in his scheme to defraud Sly Stone of tens of millions of dollars.

“On the eve of the Grammys that celebrate the best of our artists, we see a dark side of the music business where some of these artists are being robbed of their intellectual property and the fruits of their genius by unscrupulous people who prey on their trusting nature and lack of business and legal knowledge,” said Robert J. Allan of Allan Law Group who represents Stone.

“Not satisfied with the royalties he diverted from Sly Stone, Goldstein, without Stone’s knowledge or consent, registered his trade name - Sly and The Family Stone - with the U.S. Patent and Trademark Office as owned by a Goldstein company and borrowed millions of dollars secured by Sly’s future royalties,” Allan added.

Goldstein used the proceeds of his scheme to live a lavish lifestyle and purchase luxurious properties worth over $80 million through trusts and offshore corporations.

Joining Sly Stone as a plaintiff is radio mogul Ken Roberts, a former manager, who is pursuing claims against Goldstein for fraud and identity theft. The claims are based on the fact that Goldstein, without Ken Robert’s knowledge or authority, stole the name and identity of a company Roberts incorporated in 1972 when he managed Sly Stone so that Goldstein could obtain Stone's royalties from Broadcast Music, Inc. (“BMI”).

Since being advised of the fraud, BMI, a royalty collection company, has co-operated with Stone’s counsel and has refused to pay any further royalties for his musical compositions to Goldstein or his collaborators. Defendants Warner Chappell and Sony Music have refused to pay any royalties pending a resolution of Stone’s claims.

The lawsuit seeks compensatory damages, declaratory relief, a royalty accounting, appointment of a receiver, and a constructive trust over the properties Goldstein and his collaborators purchased.  The lawsuit also requests punitive damages against Goldstein and his collaborators for "deceitful, fraudulent, malicious, and oppressive acts" which were undertaken with intent to cause harm to Stone and Roberts.

Sly Stone and Ken Roberts are represented by Robert J. Allan of Allan Law Group: (310) 456-3024 or allan@rjallanlaw.com

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Barbara Casey
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