Thursday, April 24, 2008
Earlier on this blog, I discussed the ongoing dispute over James Brown's estate.
Here is some additional information from Lynnley Browning, Stewards of James Brown Estate Sue Morgan Stanley, NYTimes.com, April 24, 2008:
A dispute over the estate of the legendary soul singer James Brown has reached a bitter new pitch — on Wall Street.
The estate’s guardians are accusing Morgan Stanley, the investment bank, of failing to prevent the estate’s previous manager, David G. Cannon, from draining millions of dollars held for Mr. Brown at the bank.
The money, which was to be used to finance Mr. Brown’s lavish personal lifestyle, came from the 1999 sale of $26 million of “Pullman bonds” that were tied to Mr. Brown’s future royalty income.***
In a statement Wednesday, Morgan Stanley said that the newest lawsuit “is without merit and we will contest it vigorously.” The bank said it had documentation authorizing Mr. Cannon to manage the funds in question.***
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.