JCOR Records Chief Sues Universal Music’s IGA Unit

Universal Music Group’s IGA division was sued in New York by Jay Faires, head of JCOR Records, who accused IGA of trying to drive him out of business.

The lawsuit stems from a dispute that began shortly after Faires cut a distribution pact for JCOR with IGA, based in part on Faires’ claim that JCOR held a stake in Vagrant, home to such indie stars as Dashboard Confessional and Saves the Day, sources said. IGA did not renew its deal.

But Faires’ ties to Vagrant were called into question after he tried to purchase a 50% stake at a later date.

A competing distributor, TVT Records, produced legal papers claiming that it owned distribution rights and the right to purchase the 50% stake in Vagrant if there were any other suitors. A court agreed and granted an injunction barring Faires from purchasing the stake, sources said.

Vagrant soon became the target of a bidding war among several labels. After negotiating a settlement with TVT, IGA then bought a half-stake in Vagrant, sources said.

Faires, who accuses IGA of trying to force him out of business to raid Vagrant, could not be reached for comment. IGA also could not be reached.