Beats Electronics’ co-founders are preparing to dive headfirst into a pool of cool Apple cash but before Jimmy Iovine and Dr. Dre collect their check from Cupertino, a former employee is already preparing to sue Beats for upwards of $20 million.
David Hyman, co-founder of the music subscription service MOG, has filed a lawsuit against Beats claiming he was hired and then deliberately fired before he could cash in on the equity grant he was promised.
MOG’s music service was acquired by Beats Electronics in June 2012. As the co-founder behind the service, Hyman was brought on along with the entire MOG team to build Beats Music out of the ashes of MOG’s tech under the code name Project Daisy.
Project Daisy turned into Beats Music before finally launching in early 2014. During that time David Hyman stayed on as CEO of the MOG division and claims in the lawsuit he was promised an incentive plan that entitled him to compensation that included 2.5 percent of the company’s outstanding equity interests.
According to The Wrap, one percent was supposed to be payed out on Hyman’s one year anniversary with Beats, but Hyman claims he was deliberately fired before the one-year mark in an attempt to squeeze him out of his compensation.
The lawsuit says Hyman was fired for trying to fire a problematic employee. It also claims Hyman was promised a grant of 25% of the company’s equity interests once the company was valued at $500 million or more.
With rumors that $3.2 billion is floating Beats’ way, maybe Hyman should up his price of damages.
Source: The Wrap
Image: Mike Donovan