The line of high-end headphones, which Monster helped develop, was “fraudulently acquired” through a “sham” transaction, according to the lawsuit.
“Had the partnership expired on its own terms, there would have been no transfer of Monster’s ‘Beats By Dr. Dre’ product line, including all development, engineering, manufacturing, marketing, distributing and retail rights” the complaint alleges. “Defendants also absconded with Monster’s global distribution chain, key retail relationships and intellectual property.”
Less than a month after the HTC purchase, Monster alleges that Beats repurchased half the interest HTC had just acquired.
“At that point, defendants had improperly acquired a company that had been built in a partnership with Monster,” the lawsuit alleges.