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Thursday, December 7, 2006

"Lawsuit is the Word"

This important contract-related news flash from the AP (via NYLawyer.com):

Lawsuit is the word: Olivia Newton-John is suing Universal Music Group Inc. for allegedly failing to pay more than $1 million in royalties on sales of the "Grease" soundtrack album.

Newton-John starred with John Travolta in the 1978 movie version of the Broadway hit.

The breach-of-contract suit was filed Friday in Los Angeles County Superior court. It contends that while Universal did pay some royalties on the album, it failed to make a range of other contractual payments, said John Mason, an attorney for Newton-John.

According to the suit, a recent audit showed Universal owes more than $1 million to Newton-John's company, ON-J Productions, Ltd.

"The lawsuit is without merit and, at the appropriate time, we expect that the court will dismiss it," Universal said in a statement Tuesday.

[Meredith R. Miller]

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