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The SEC said it wants to question Jay-Z,
originally named Shawn Corey Carter, about the $200 million sale
of his Rocawear clothing label in 2007 to the Iconix Brand
Group, Inc.
"The Commission seeks Carter's testimony to inquire about, among
other things, Carter's joint ventures with Iconix," the SEC
said, adding that it had questions about whether federal
securities laws were breached.
Hours later, a Scandinavian law firm and a financial institution
filed a lawsuit against the rapper over fees incurred during the
purchase of Tidal, a digital music service he co-owns with his
wife Beyonce and two other star singers, Rihanna and Madonna.
The lawsuit claims that Jay-Z's parent company, S. Carter
Enterprises, hired the firms in 2015 to assist in the purchase
of the subscription service's owner, the Swedish company Aspiro
AB.
A balance of $598,383.00 is still outstanding after he made a
partial payment.
"We are aware that the SEC is seeking information on Iconix's
financial reporting. Mr. Carter had no role in that reporting or
Iconix's other actions as a public company," a representative
for Jay-Z said in a statement to CNBC.
"Mr. Carter is private citizen who should not be involved in
this matter," the statement said.
In November, the rapper failed to appear after an initial SEC
order. In February, the SEC issued a second subpoena for his
testimony. He declined to appear or provide any dates on which
he would be available, the SEC statement said.
Jay-Z continued as chief creative officer of the Rocawear brand
after the 2007 sale. Iconix also entered a separate joint
venture with the rapper as part of the sale to identify brands
to be acquired or developed.
(This story corrects typographical error in headline.)
(Reporting by Katanga Johnson; Editing by Tom Brown and David
Gregorio)
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