Madlib Sues Former Manager for ‘Pervasive Mismanagement,’ Financial Self-Dealing

November 1, 2024 E Jazz Reporter

Entertainment

The new complaint accuses Eothen “Egon” Alapatt, who was previously sued by the estate of Madlib collaborator MF DOOM, of “repeatedly breaching his duties” for his own benefit.

Madlib

Mathieu Bitton

Legendary hip-hop producer Madlib has filed a lawsuit against his former manager Eothen “Egon” Alapatt, alleging the executive abused his role to claim undue profits from Madlib’s music and merch companies, among other accusations.

In a complaint filed Thursday (Oct. 31) in Los Angeles court, attorneys for Madlib say Alapatt began managing Madlib’s business affairs around 2010 when the famed producer left his deal with Stones Throw Records — where Alapatt worked as an executive — in an effort to “own and control his music.” Around that time, the complaint alleges that Alapatt was fired from Stones Throw.

According to the lawsuit, Madlib trusted Alapatt to set up and manage two business entities (“Madicine Show” for his music interests and “Rapp Cats” for his merchandise) in Madlib’s name, with profits from the businesses to be shared between the two parties. However, Madlib allegedly discovered only recently that Alapatt was not only failing to properly run those businesses but was “also engaged in rank self-dealing, concealing information from and repeatedly breaching his duties to Madlib, and otherwise engaging in persistent and pervasive mismanagement.”

Trending on Billboard

The complaint further alleges Alapatt abused his position by taking “a fee off the top” of all income generated by Madlib’s label, Madicine Show, and that he “refused to account to Madlib” about his compensation and failed to provide any written agreements to the producer. Madlib’s lawyers additionally claim that Alapatt refused to allow an audit of his own business, Now-Again — which they say Alapatt inserted under false pretenses as a go-between for Madicine Show and its distributor, Ingrooves — to ascertain what proceeds it earned from Madicine Show.

Elsewhere, the complaint alleges that Alapatt “directed a single lawyer and single accountant to represent him” as well as Madlib, Madicine Show, Rapp Cats and Now-Again without Madlib’s “informed consent” and then “directed that lawyer and that accountant to refuse to cooperate with Madlib” and the new professional team Madlib had assembled after his relationship with Alapatt went south.

The complaint states that Madlib only discovered the extent of Alapatt’s alleged malfeasance in April 2023, when he finally managed, through “forensic accounting,” to learn more about the financials of Madicine Show and Rapp Cats during the period of 2018 to mid-2022. His lawyers claim this revealed “several accounting irregularities” and “a lack of any backup documentation” for several hundred thousand dollars in “‘consulting,’ ‘commissions,’ ‘fees’ or ‘reimbursements’” for Alapatt as well as a second named defendant, Jeffrey Carlson, a.k.a. Jeff Jank — an alleged associate of Alapatt’s who formerly worked as an art director at Stones Throw and is described in the complaint as “a member of Rapp Cats.”

The complaint further claims that Alapatt took “tens of thousands of dollars for personal expenses” from the two business entities, and that there was no documentation of employee payroll, inventory or artist royalty statements.

Alapatt also allegedly “captur[ed] half of Madlib’s producer royalties and advances for himself” while locking Madlib out of his Ingrooves, Apple Music, Bandcamp, YouTube and Facebook accounts; the complaint also claims he locked Madlib out of the Instagram account for his trademarked alter-ego Quasimoto, a cartoon character that the producer used throughout his career for merchandise and music.

“Madlib has since demanded that Madicine Show and Rapp Cats be wound up and dissolved and that any contractual relationship with those entities…be terminated,” the complaint reads. “[Alapatt] refuses to do so.” Instead, it claims, Alapatt told Madlib that he’s welcome to “‘buy him out’ of his interest in those entities or the underlying intellectual property.”

Thursday’s lawsuit is the second lawsuit to be filed against Alapatt over the past year. Last October, the manager was also sued by the estate of Madlib’s late collaborator MF DOOM for allegedly stealing the rapper’s notebooks full of lyrics. In response to that suit, attorneys for Alapatt called the case “baseless and libelous,” and characterized it as “the continuation of a year-long smear campaign.”

Madlib’s team is seeking a jury trial and a judicially supervised wind-up and dissolution for Madicine Show and Rapp Cats, “to include a full and complete accounting of the assets and liabilities of the entities [and] a determination of any unauthorized remuneration,” among other requests. Madlib is also seeking damages from Alapatt and Now-Again.

Alapatt and his attorney did not immediately respond to Billboard‘s requests for comment. Carlson also did not immediately return a request for comment.

Daily newsletters straight to your inbox