Sony Music breached contracts and shorted royalty payments to former American Idol contestants and the series' music company 19 Recordings, according to a federal lawsuit filed today, The Tennessean reports.
The suit — which is seeking at least $10 million in damages — was brought by 19, which entered into licensing agreements with Sony for recordings by several former Idol contestants including Nashville residents and recording artists Kelly Clarkson, Carrie Underwood and Kellie Pickler.
Other artists cited in the suit are Clay Aiken, Chris Daughtry, Jordin Sparks, David Archuleta and David Cook. According to the suit, Sony then shorted 19 and the artists on royalty payments because of "systemically incorrect calculations."
According to the suit, 19, which was founded by Simon Fuller, discovered the shortfalls from audits performed by two separate accounting firms. More shortfalls likely would be discovered if Sony gave 19's accountants full access to the appropriate documents, which the suit alleges Sony has refused to do.
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