SourceAudio sues Swiss company Utopia Music for backing out of a deal to purchase SourceAudio for $26.5 million, which has increased with interest to $37M. Lawyers for California-based SourceAudio — a tech platform for digital asset management and monetization — claimed that the company had struck a deal in March 2022 to sell itself to Utopia, only now Utopia claims they are “not prepared to close the transaction.” “Despite repeated assurances that Utopia would be able to close…, Utopia engaged in a pattern of discontinuing discussions for an extended period of time, only to resurface immediately before the next intended closing date to indicate that it was unable to close by such date,” the suit reads. In a statement to Billboard, a spokesperson for Utopia refuted the lawsuit’s allegations but provided little additional detail: “Utopia Music rejects the claims made by the plaintiff. As the legal proceedings are ongoing, we will not comment further.”
SourceAudio says it’s “ready, willing, and able” to finalize the deal and that Utopia is legally bound to do so. “SourceAudio requests that Utopia be ordered to perform its obligations specifically.” “In the alternative, SourceAudio has been damaged by Utopia’s breach in an amount to be determined at trial, but no less than $37.265 million.”
– Excerpt from an article for Billboard. Read the full article here.
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