David Mays (Source magazine co-founder) has announced the filing of a multi-million dollar lawsuit alleging that the Black Enterprise Greenwich Street private equity fund, backed by the likes of Citigroup and well-respected publisher Earl Graves, Sr., has plotted to steal the magazine and has illegally attempted to fire him from his position as President of the company.
Mays has retained the esteemed law firm of Cole, Schotz, Meisel, Forman & Leonard, P.A., to prosecute his claims.
"Since I started this magazine 18 years ago, I have always placed the best interests of my readers first, and I built a vibrant business by earning the trust and loyalty of millions of Hip-Hop fans across the world. I did this by always making sure that The Source's editorial voice was unbiased and independent of commercial influences, standing strong in the face of Hip-Hop's detractors and never bowing down to corporate or advertiser pressures. It is truly sad to see that my 'partners' at Black Enterprise appear to have gone behind my back and chosen to blatantly undermine the editorial integrity of the Hip-Hop community's only independently-owned media voice, selling our readership out to corrupt big-corporate interests for their own selfish financial gain," said Mays.
The Black Enterprise Greenwich Street Fund is a $94-million dollar private equity fund backed by Citigroup. The fund acquired an 18% equity interest in The Source for $12 million in April, 2002.
Mays and his longtime partner, Ray "Benzino" Scott, remain the 82% shareholders in the company.
Benzino is disgusted by what he sees as Black Enterprise's lack of respect for the Hip-Hop culture and for the young people of America's mostly Black and Latino poor inner-city neighborhoods. "The people at Black Enterprise look down on the Hip-Hop culture and are showing us that they are totally out of touch with the struggles of young people in the hoods all across America."
Mays added, "They have tried to cover up their hostile takeover attempt by falsely attacking the character and business acumen of the two people who have been the driving force of The Source's success for the last 18 years and who have positioned The Source brand to capitalize on multiple revenue streams going forward. It is clear to me that Black Enterprise has little regard for the millions of loyal Hip-Hop fans who read The Source each month when the first thing they do after their fraudulent 'takeover' last month is publicly denounce the strong stance the magazine has taken in the past few years against the corporate-driven monopolization, corruption, payola and violence plaguing the Hip-Hop music industry."
"Their scheme to steal our magazine is probably fueled by their desire to add it to their own struggling publishing operation (Black Enterprise magazine), that I believe has not been nearly as profitable for them in recent years as it once was."
A full hearing in front of the Honorable Justice Richard Lowe in New York State Supreme Court in Manhattan has been set for Tuesday, February 21.
Mays' lawsuit seeks an injunction that would immediately reinstate him to his CEO post at The Source.
Mays has retained the esteemed law firm of Cole, Schotz, Meisel, Forman & Leonard, P.A., to prosecute his claims.
"Since I started this magazine 18 years ago, I have always placed the best interests of my readers first, and I built a vibrant business by earning the trust and loyalty of millions of Hip-Hop fans across the world. I did this by always making sure that The Source's editorial voice was unbiased and independent of commercial influences, standing strong in the face of Hip-Hop's detractors and never bowing down to corporate or advertiser pressures. It is truly sad to see that my 'partners' at Black Enterprise appear to have gone behind my back and chosen to blatantly undermine the editorial integrity of the Hip-Hop community's only independently-owned media voice, selling our readership out to corrupt big-corporate interests for their own selfish financial gain," said Mays.
The Black Enterprise Greenwich Street Fund is a $94-million dollar private equity fund backed by Citigroup. The fund acquired an 18% equity interest in The Source for $12 million in April, 2002.
Mays and his longtime partner, Ray "Benzino" Scott, remain the 82% shareholders in the company.
Benzino is disgusted by what he sees as Black Enterprise's lack of respect for the Hip-Hop culture and for the young people of America's mostly Black and Latino poor inner-city neighborhoods. "The people at Black Enterprise look down on the Hip-Hop culture and are showing us that they are totally out of touch with the struggles of young people in the hoods all across America."
Mays added, "They have tried to cover up their hostile takeover attempt by falsely attacking the character and business acumen of the two people who have been the driving force of The Source's success for the last 18 years and who have positioned The Source brand to capitalize on multiple revenue streams going forward. It is clear to me that Black Enterprise has little regard for the millions of loyal Hip-Hop fans who read The Source each month when the first thing they do after their fraudulent 'takeover' last month is publicly denounce the strong stance the magazine has taken in the past few years against the corporate-driven monopolization, corruption, payola and violence plaguing the Hip-Hop music industry."
"Their scheme to steal our magazine is probably fueled by their desire to add it to their own struggling publishing operation (Black Enterprise magazine), that I believe has not been nearly as profitable for them in recent years as it once was."
A full hearing in front of the Honorable Justice Richard Lowe in New York State Supreme Court in Manhattan has been set for Tuesday, February 21.
Mays' lawsuit seeks an injunction that would immediately reinstate him to his CEO post at The Source.
