Nine Inch Nails frontman Trent Reznor has filed a million dollar lawsuit against his former manager John Malm and former business manager/accountant Richard Szekelyi accusing them of fraud and breach of fiduciary duties.
Reznor alleges that he was convinced to sign a five-year management agreement in 1989, even though material information was not disclosed in the contract; that Malm and Szekelyi registered the Nine Inch Nails copyright and took 50 percent ownership in merchandising, the Nothing Records label and earnings from other Reznor projects; that more than $3 million of
Reznor’s money was directed to jointly owned corporations without the musician’s knowledge; and that Malm and Szekelyi used Reznor’s money and company money for personal travel, entertainment and expenses.
Although he reckons he is owed millions, Reznor doesn’t know exactly how much so he has petitioned the court to order Malm and Szekelyi to open their books to provide full disclosure of the amount he is due.
Malm and Szekelyi are yet to comment on the allegations.Powered by Sidelines