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News & Events
Lawsuit: Pop star's ex-manager a racketeer
By GRAHAM BRINK, Times Staff Writer
© St. Petersburg Times
published June 25, 2002
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TAMPA -- Teenage pop star Aaron Carter filed a lawsuit Monday that
accuses his former manager and record label of cheating him out
of hundreds of thousands of dollars.
The suit, filed in state court in Hillsborough County, also accuses
manager Lou Pearlman and his company Trans Continental Records of
racketeering for a deliberate pattern of criminal activity in dealing
with clients like Carter.
"This isn't just an honest disagreement over the terms of
a contract," said Tampa lawyer William Yanger, who represents
Carter. "This is something that has happened time and time
again."
Scott Bennett, vice president of Trans Continental, said company
officials not only feel that they don't owe Carter any money but
that Carter might owe the company money. Bennett had not seen the
lawsuit and said he could not comment on the details.
According to the lawsuit, Carter signed with Trans Continental
in 1997. Among other things, the contract called for regular accountings
of the revenue Carter generated and the payment of royalties in
the amount of two-thirds of all revenues received from sales of
the recordings.
Yanger was not sure exactly how much Carter is owed since the regular
accounting was not provided as the contract specified, he said.
The lawsuit states that the distributor of Carter's records has
paid Trans Continental at least $530,000 in royalties and more in
undisclosed compensation.
Trans Continental has paid Carter nothing, the suit states.
Carter, 14, was born in Tampa and rose to fame in the late 1990s
with hits like Crazy Little Party Girl, I'm Gonna Miss You Forever
and Shake It. He followed that up with the 2000 release of the album
Aaron's Party (Come Get It) and a single and video of the same name.
He has opened for Britney Spears and has sung with his brother Nick
Carter of the Backstreet Boys.
Pearlman and Trans Continental once represented the Backstreet
Boys and 'N Sync, both of which sued to be released from their deals,
accusing Pearlman of deception and cheating them out of royalties.
Those cases have been settled.
A history of deliberately deceiving clients, including Carter,
the Backstreet Boys, 'N Sync and Take 5, substantiates the racketeering
charge, the suit alleges. Plaintiffs who win civil racketeering
claims can be awarded up to triple the monetary damages, according
to Florida civil statutes.
"They find talented kids, sign them, watch them get successful,
don't pay them, wait for them to sue and then settle the cases,"
Yanger said. "It is not an isolated case."
-- Graham Brink can be reached at (813) 226-3365 or brink@sptimes.com.
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