Indie label Reach Records claims the UMG imprint balked at a price that it had already agreed to pay and then killed the deal "at the finish line."
The Capitol Records Building on May 19, 2008 in Los Angeles, California.
Valerie Macon/Getty Images
A federal judge is refusing to dismiss a lawsuit that claims Capitol Christian Music Group (Capitol CMG) improperly bailed at the last minute on a done-deal to buy a Christian hip-hop label.
The deal, not publicly known until the December lawsuit, would have seen the Universal Music Group (UMG) imprint acquire Reach Records, an Atlanta-based indie co-founded by the rapper Lecrae. But Reach says Capitol CMG and UMG then suddenly balked at the price and killed the sale.
