Troubled pop star Michael Jackson was sued yesterday (11JUL05) by the Prescient Acquisition Group, after the singer failed to pay them $48 million (GBP27 million) in fees for recovering his stake in publishing rights for THE Beatles' back catalogue.
The asset acquisition company told the District Court in Manhattan, New York that the THRILLER star approached them in November 2004 to secure refinancing of a staggering $272 million (GBP153 million) debt to the Bank of America.
Prescient thus secured $537 million (GBP200 million) for Jackson to clear his debt and buy the half of The Beatles legacy which he didn't already own.
The company claimed it was entitled to an immediate payment of $24.8 million (GBP13 million) - 9 per cent of the funds used to pay off the Bank of America debt and a $3.3 million (GBP1.3 million) advance to Jackson and his company MJ Publishing.
Prescient accused Jackson of breach of contract, on the grounds that it had honoured what was expected in a written contract, and insisting Jackson has no right to "retain the benefits of those services in equity and good conscience, without paying to Prescient an amount to be determined at trial."12/07/2005 05:30