Jay-Z’s company Roc Nation is suing a city licensing firm, accusing it of bilking investors in a “massive years-long fraud,” according to a new lawsuit.
Roc says in the Manhattan Supreme Court suit that Iconix Brand Group Inc., lured it and other companies — including Ecko, Ed Hardy and PONY — into doing business by lying about its financials and then made off with their money without providing the promised services.
Iconix, which the SEC and the feds have been investigating, was able to “amass a portfolio of trademarks under false pretenses,” court papers say.
Iconix then “absconded with its licensees’ money without providing the branding and retail support it promised,” the court documents allege.
Roc sold men’s clothing brand Rocawear to Iconix for $204 million in 2007.
The company’s stocks were strong through 2015, but today they are worth “less than a dollar per share,” the suit says.
“Plaintiffs never would have entangled their business interests with Iconix had it disclosed the true condition of its business or the massive accounting fraud in which it was engaged,” the court documents claim.
Roc says Iconix should pay for the legal costs incurred when Jay-Z, whose given name is Shawn Carter, was forced to testify after the SEC subpoenaed him and for other unspecified damages.
Iconix did not return requests for comment.