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Dame Dash has been forced into selling his entire stake in Roc-a-Fella Records to pay off a massive debt.
According to a report TMZ published on Thursday, August 1, the United States Marshals Service plans to auction off Dash's 33.3 percent interest in the company in order to settle a $823,000 judgment that was made against him two years ago. Dash was sued by film director Josh Webber, who produced Dear Frank alongside Muddy Water Pictures in 2019. Webber filed a lawsuit for copyright infringement and defamation after Dash told people he still owned the rights to the film despite being dropped from the project.
Dash's stake in the company includes its primary asset — the rights to JAY-Z's debut album Reasonable Doubt. As Billboard notes, the rest of the catalog that was released through the legendary label is owned by other entities and will not be a part of the sale. The auction will be held at a hotel in Midtown Manhattan on August 29. All prospective bidders must register with Webber's attorney Christopher Brown. They must also be able to bid no less than $1.2 million and provide a deposit of 20 percent of the minimum bid, which is $240,000.
Roc-a-Fella Records' other two co-founders, JAY-Z and Kareem "Biggs" Burke," did everything they could to halt the auction. They even updated their company's bylaws and reportedly attempted to get involved in the lawsuit. However, a federal judge ruled against their efforts back in February. Even if someone does by Dash's stake, he or she will only be a minority owner.
“Whomever buys Dame’s stake in Roc-A-Fella will be a minority owner without authority over any decision-making,” a source told Billboard. “They won’t have the ability to sell the copyright or borrow against the master as all decisions require majority vote.”
“There’s also an expiration date on the master ownership for the company, which means revenue and the only asset doesn’t have many years left," the source added.
The judge who presided over the case earlier this year did leave some hope for the company. It's possible it's two remaining owners could swoop in and purchase the rights themselves. However, there's no confirmation that Hov and Biggs have plans to do that.