Three Lions Entertainment, the production company behind Fashion Rocks, has been hit with a second dose of litigation over unpaid dues from the live music event. Just weeks after being sued by CBS for $2.45 million, they will now have to answer to a $1.4 million lawsuit from their 2014 venue, New York’s Barclays Center.
The recurring event, which mixes fashion and music in tandem with New York Fashion Week, was hosted by Ryan Seacrest on September 9th. Despite an impressive lineup (Justin Bieber, Rita Ora, KISS, Nicki Minaj, Pitbull, Duran Duran, Jennifer Lopez, and more), the live broadcast was met with poor ratings. Only 2.4 million viewers tuned in for Fashion Rocks, which was less than half the audience they had for the previous airing in 2008.
On Monday, November 3rd, CBS brought suit against Three Lions Entertainment for the $2.45 million owed contractually for their services. The broadcasting company also forwarded $500,000 to be repaid as part of the $2.45 million, for use of trademarks related to the National Academy of Recording Arts and Sciences (NARAS).
Now, the Barclays Center is piling on another bill. The Brooklyn venue is allegedly owed a total of $2 million from the event, but has comped $600,000 of that sum from ticket sales. Barclays is now seeking the remaining $1.4 million in court.
Three Lions Entertainment, which is run by CEO Richard Beckman (former Chief Executive of The Hollywood Reporter publisher Prometheus Global Media), has not disputed any of the charges. Beckman informed the two parties that they simply do not have enough money to pay them back right now.
He allegedly stated in a phone conversation with CBS that the company is “insolvent.” Additionally, the Barclays Center said they received an email from a purported “Liquidating Trustee” for Three Lions, explaining that the company does not have the funds.
CBS believes that Three Lions specifically planned the disaster. One of the individuals under fire is Beckman’s partner, Joel Katz, an attorney who also represents the NARAS. According to the network, Katz had prior knowledge that by having them front the money for trademark issues, he could save his own company money but still ensure the client got paid. CBS has described him as “cowardly to the extreme.”