Wiz Khalifa Sues Record Label, Manager for Unfair 360 Deal
Wiz Khalifa is seeking a court declaration ending a “360-deal” as part of a lawsuit in which he contends that his former manager, Benjy Grinberg and his Rostrum Records, profited at his expense by self-dealing.
The lawsuit, filed in Los Angeles Superior Court on Tuesday, contends that Grinberg and Rostrum acted as “faithless fiduciaries in direct contravention of their obligations to him.”
His lawsuit claims that Grinberg and Rostrum induced him to enter into a series of transactions that amounted to self dealing.
The lawsuit notes that Grinberg began representing Khalifa in 20o4, when the recording artist was just 16. His lawsuit contends that Grinberg and his label “induced” him to enter into a “360 agreement,” which provided that Khalifa would be exclusive to Rostrum and Rostrum would share in his income streams as a songwriter and touring a merchandising. The lawsuit contends that with that contract and a series of amendments, Grinberg failed to disclose alternative arrangements that could be more beneficial to him, and instead tied him to an agreement that “reached for more than a decade into virtually every aspect” of his professional life.
Via statement, Grinberg says:
“I am very disappointed and surprised by today’s news. To witness an artist turn on you after supporting them for a number of years is very disheartening. This is an egregious lawsuit filled with inaccuracies, yet unfortunately people sometimes resort to these practices as a way of conducting business.”
Khalifa dropped Grinberg as his manager in 2014 and it seems like he now wants off of Rostrum altogether. Khalifa and his lawyers state that they can end the relationship through the California Labor Code’s seven-year rule.
If Rostrum loses Khalifa, he will be the second big name artist to leave the label since 2014. Mac Miller also started his career with the company in 2010 and decided to leave in 2014. Rostrum recently released Miller’s mixtape Best Day Ever for sale last week, even though it was given away for free when it originally came out in 2011.