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Scooter Braun and Troy Carter settle legal dispute over alleged unpaid loan

By | Published on Friday 22 March 2019

Troy Carter

The legal battle between pop managers Scooter Braun and Troy Carter is over. Which is no fun at all. The two music business entrepreneurs seemingly agreed an out of court settlement earlier this month, the terms of which are not known.

Braun’s Ithaca Management Holdings company went legal in the LA courts last September, listing Carter, his wife and his Atom Factory company as defendants. They were all accused of fraud and breach of contract over failure to pay back an alleged loan.

Court papers filed a month later, as Ithaca sought to freeze the bank accounts of Carter’s companies, provided more background to the dispute.

They alleged that Braun’s company loaned Carter’s business $26 million in June 2016 and, as of last autumn, $14.5 million remained unpaid. Things seemingly came to ahead when Atom Factory settled an unrelated legal dispute, because Ithaca reckoned that the profits from that other settlement should have been used by Carter’s companies to pay off the loan.

At the time, Carter disputed a bunch of what Ithaca had claimed in its legal filings, saying that there was no loan, and that the dispute had in fact arisen from his selling Atom Factory to Braun’s business in 2016 and then agreeing to buy it back in 2018.

Carter then laid into Braun for attempting to tarnish his reputation after talks relating to the sale and buy-back of Atom Factory reached a roadblock.

Despite Carter’s contentious statements late last year, it seems a deal has now been done. According to court papers seen by both Billboard and The Blast, both sides agreed to an out of court settlement on 19 Mar. Neither side has as yet commented on that deal.