As CMJ Music Marathon 2013 floods New York City with musical acts and onlookers, the group that oversees the annual concert confab is battling a potentially budget-damaging lawsuit.
On October 24, CMJ plans to ask a judge to throw out a lawsuit that demands almost $1 million from the small company, according to a recent New York state court filing. In May, live music group Metropolitan Entertainment filed the suit, which claims CMJ never repaid loans worth almost $800,000, including interest, to help pay for the annual festival. Metropolitan is also asking for $99,000 in additional fees, plus reimbursement for its legal costs.
The dispute stems from a planned merger between Metropolitan and CMJ that was first announced in 2009. The deal valued CMJ at $2.4 million. But the marriage was never consummated. Now, if the two sides don’t reach a settlement, they might be headed to trial.
As The New York Times, which first reported the lawsuit, points out, while $1 million isn’t a lot in the music industry, it could be serious for CMJ. The organization opened its doors in 1978 as a college-radio trade publication and has seen its influence over the indie scene wane in recent years alongside the growth of SXSW and various online music magazines and blogs.
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This year’s CMJ events run through October 19, with a lineup that includes Dismemberment Plan, Savages, Fuck Buttons, Speedy Ortiz, and about 1,400 other acts.
