Former Time Warner Exec Hit With Lawsuit

Robert Morgado, former chairman of Time Warner Inc.’s music group, was sued for $40 million on claims that he reneged on a Chinese entertainment venture and slandered a popular TV host. The suit filed in New York State Supreme Court by Lan Yang Wu, host of the popular “Lan Yang Horizon” Chinese TV show, and other plaintiffs, accuses Morgado of breach of contract and slander in connection with a deal for the venture. The suit also names Morgado’s Maroley Communications and Youban Entertainment Group Inc. companies. Morgado declined to comment. According to the suit, Warner Music in January 1995 bought a 50% stake in the TV firm that produced “Lan Yang Horizon” and “Warner Music Stars” shows. Morgado, fired as head of Warner Music in May 1995, agreed to take over Warner’s investment in the Chinese entertainment company in February, the suit says. Lan Yang and the other plaintiffs say Morgado breached his fiduciary duties and their contract by not providing promised investments, by forming Youban Entertainment Group on his own and by trying to set up competing Chinese music businesses. The suit also seeks punitive damages.