MCA Records responded to racketeering lawsuit.

The Los Angeles-based unit of MCA Inc. issued a statement saying it was “outraged” that small, New Jersey-based Sugar Hill Records had accused it of fraudulent activities in a $240-million suit filed this week. MCA called Sugar Hill’s action “frivolous” and said it was a “bad faith effort” to avoid facing MCA’s claims that Sugar Hill had engaged in “massive fraud and material breaches in its dealings with MCA Records.”