Record Clubs Lose Bid to End Lawsuit
The nation’s biggest record clubs lost a bid to derail a class-action lawsuit contending they have cheated songwriters out of an estimated $100 million a year in royalty payments by using the wrong formula to calculate their earnings.
A federal judge in Los Angeles ruled that the firms had failed to prove the songwriters willingly accepted reduced royalties. The ruling paves the way for a Jan. 13 trial.
The suit was filed by the estate of legendary Dixieland trombonist Edward “Kid” Ory and other copyright holders.
-- Jeff Leeds
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