Over $2 Billion Is Reportedly at Stake in Jay-Z’s Lawsuit Against Bacardi

(Photo: Kevin Winter/Getty Images)

New reports indicate that Jay-Z’s Bacardi lawsuit could exceed $2 billion. The case involves the cognac brand D’Ussé which Jay-Z and Bacardi have a 50/50 partnership in.

Some clever sleuthing uncovered that Daniel Schimmel’s experience profile cites the $2 billion figure as part of his work history. Schimmel leads the International Litigation and Arbitration practice of Foley Hoag’s New York office. He is also an arbitrator in the D’Ussé case. 

His most recent arbitration description reads as follows: 

“Chair of an ICDR Tribunal with a seat in New York in an arbitration between members of a Delaware limited liability company. The amount in dispute exceeds US $2 billion.”

Complex was told by a source close to Foley Goag that the $2 billion case is the lawsuit between Jay-Z and Bacardi. Furthermore, it was reported that Schimmel has worked with Jay-Z in the past on the 2018 litigation against Iconix Brand Group Inc.

Reports of the lawsuit began in October. When this started, Jay-Z’s company, SC Liquor LLC, was said to be suing Bacardi in order to gain access to documents. The argument was that Bacardi’s subsidiary Empire Investments Inc. was trying to “stall and stonewall” its efforts to access financial information on the value of D’Ussé.

However, Bacardi responded that both parties, Empire Investments and Jay-Z had a “handshake deal” for Empire Investments to buy Jay-Z’s 50% stake in D’Ussé. Jay-Z was then said to have “abruptly reneged on its agreement and doubled its demanded valuation.”

Therefore, it is possible that D’Ussé was worth as much as $1 billion before the “handshake deal” was broken. 

Empire Investments has also said 800 pages worth of documents were already provided to the music artist’s company.

Jay-Z’s company, SC Liquor, is said to have been granted an emergency hearing against Bacardi’s subsidiary Empire Investments. The case is supposed to go to court in early December. 

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