Irving Azoff has settled his $100 million lawsuit against Nomura Holdings and its Stateside subsid Capital Co. of America, putting an end to the often acrimonious legal wrangling.
Though insiders said Azoff got considerably less than what he sought, the out-of-court settlement reached late last week nonetheless vindicates the industry vet.
Daniel Petrocelli, Azoff’s lawyer, confirmed a resolution had been reached, but declined further comment.
Azoff sued Nomura last year (Daily Variety, Oct. 29) claiming the financial titan reneged on an agreement to share profits as well as provide millions of dollars to finance entertainment projects and acquisitions.
Azoff, who manages the Eagles and owns Giant Records, also claimed he passed on other deals after Capital committed to funding several projects.
Nomura entered the high-flying world of asset-backed securities shortly after entertainer David Bowie bowed his so-called Bowie Bonds. The bonds, which were orchestrated and designed by David Pullman, were tied to Bowie’s music publishing and recording royalties.
The deal spawned a number of competitors, including Nomura, which hired Azoff and Casey Wasserman to help navigate its entry into the music and entertainment industries, and identify potential deals for the Japanese firm.
Losses were racked up by the arm’s chief, Ethan Penner, who invested heavily in real estate and warned Wall Street that the company would post a $200 million loss. When the losses became too extreme for Nomura execs, Penner was forced to resign.
Azoff asserted in his L.A. Superior Court lawsuit that he was entitled to a 25% share of the profits, but the deal was scrubbed when Penner left and was replaced by Boyd Fellows.
Azoff asserted that Fellows “wanted to ensure Azoff would lose money and prestige by his association with Capital.”