The case between Jay-Z and Bacardi over D’Usse has been cited with a $2 billion figure. However, there is going to be a hearing at the beginning of next month.
The case is over a deal made between Jay-Z’s alcohol company, SC Liquor LLC, and Bacardi’s subsidiary, Empire Investments Inc. In December, they had agreed in a “handshake deal” for Empire to buy Jay-Z’s 50% stake in his cognac line, D’usse. However, later, SC Liquor asked for double the price that the companies had agreed to. It is currently unknown as to what the original price was, however it seems to have changed due to Jay-Z’s belief that D’usse was being undervalued.
Last month, SC Liquor LLC was questioning its financial relationship with Empire Investments Inc. They wanted to monitor the conduct of the business to protect its rights as a partner. However, Empire Investments Inc. slammed back by talking about how SC Liquor tried to back out of their deal.
Daniel Schimmel, the arbitrator in the case, has cited the $2 billion as part of his work history. Here is the direct quote from his firm’s website.
“Chair of an ICDR Tribunal with a seat in New York in an arbitration between members of a Delaware limited liability company. The amount in dispute exceeds US$2 billion. “
According to Complex, the figure mentioned is from this case. They had also had a look at the court documents and learned that Schimmel was one of the original potential arbitrators for Jay’s 2018 litigation against Iconix Brand Group Inc. However, this information was not disclosed as part of the current arbitration. It must not have been deemed relevant for the current case.
At the beginning of next month, there is going to be an emergency hearing granted to SC Liquor against Empire Investments. Stay tuned for more updates.
Written by Justin Acosta