Sly And The Family Stone’s Music Production Company Files For Bankruptcy

by Tara Arick on June 6, 2013 · 0 comments

in Bankruptcy

- From LexisNexis® Mealey’s™ Daily Legal News.

The former manager of musician Sly Stone, the frontman for Rock and Roll Hall of Fame inductees Sly and the Family Stone, on June 4 put Stone’s production company into Chapter 11 bankruptcy, citing assets between $ 1 million and $ 10 million, as well as debts in that same range of value (In Re: Even St. Productions Ltd., No. 13-24363, Chapter 11, C.D. Calif. Bkcy.).

Bankruptcy 

Even St. Productions Ltd., the music production company that Stone previously owned but that is now controlled by Stone’s former manager Jerry Goldstein, listed Sony Music as its largest creditor. Goldstein owns the trademark to the name “Sly and the Family Stone.”

According to the petition, Even St. owes Sony $ 1,980,400 for an unrecouped advance.

Stone, whose real name is Sylvester Stewart, sued Goldstein in the Los Angeles County Superior Court in 2010, seeking damages for breach of contract; damages for breach of implied covenant of good faith and fair dealing; unjust enrichment; rescission; damages for breach of fiduciary duty; damages for fraud and other relief.

Fraud Alleged

Stone contends in that lawsuit, which is still pending, that Goldstein fraudulently induced him into signing a management contract that Stone thought was a standard agreement but was actually a document that gave Goldstein all of Stone’s royalty rights.

Stone maintains that he has been duped out of millions of dollars because Goldstein has created numerous companies into which he diverts royalties that belong to Stone.

Meanwhile, Stone argues that Goldstein’s misappropriation resulted in Goldstein acquiring $ 80 million in assets while Stone lived hand-to-mouth.

Goldstein is represented by David Neale of Levene Neale Bender Yoo & Brill in Los Angeles.

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