Thursday, June 30, 2011
Previously I posted that Laday Gaga and various companies with which she is affiliated had been hit with a federal RICO suit alleging improper retention of funds collected through the "Lady Gaga Japan Earthquake Relief Wristband" effort. She, or rather her publicist, have now responded by denying all of the allegations in "[t]his misguided lawsuit" that "is without merit" according to a Washington Post article. For additional coverage, see Rolling Stone (which also mentions other pop star charity efforts that run into trouble).
Having reviewed the complaint, I think it is a stretch but not frivolous and probably sufficiently well pleaded to avoid a motion to dismiss. Assuming that is correct, the key question will then be what will the discovery process reveal.