David Hyman, the founder of online music subscription service MOG, has sued Dr. Dre and Jimmy Iovine’s Beats Electronics, claiming he was fired before he received the benefits of his incentive plan after MOG was purchased by Beats in 2012, according to The Wrap.
The lawsuit claims that Hyman was entitled to compensation including 2.5 percent of the company’s “currently outstanding equity interests,” with 1 percent due on the first anniversary of Hyman’s date of employment, with installments to follow.
However, he was fired before reaching his first anniversary, which he claims was a deliberate effort to prevent him from receiving the compensation. He is seeking compensatory damages “in excess of $20 million,” plus interest.
Last week, reports surfaced that Apple was in talks to buy Beats for over $3 billion. Earlier this week, Dr. Dre was denied $3 million in Chronic royalties.
