Photo Credit: Damon Dash / 85 South Show Podcast / CC by 3.0
Damon Dash owns a one-third stake in Roc-A-Fella Records. That stake is going up for auction later this month, according to reports. Here’s the latest.
An auction is scheduled to take place on August 29 in New York City for the one-third stake Dash has in the label. A judge ordered the sale of Dash’s take after a non-payment of a $823,000 judgment to movie producer Josh Webber. Webber sued Dash for defamation and copyright infringement after a dispute over the film Dear Frank (2016), with Webber winning the case in 2022.
Co-owners Jay-Z and Kareem ‘Biggs’ Burke have objected to the auction of the share, saying the company bylaws mandate that the board of directors must approve the sell-off. Magistrate Judge Robert W. Lehrburger determined that the one-third stake qualifies as a personal asset and could be seized to satisfy personal debts.
“The question at the core of the instant dispute is whether the RAF By-Law’s prohibition on transfer and sale of Dash’s one-third ownership interest in shares of RAF without the consent of RAF’s board of directors legally prevents sale of Dash’s interest in RAF to satisfy the judgment,” Lehrburger writes in his 15-page decision. “The answer is indisputably no.”
“Without jurisdiction to enforce a judgment entered by a federal court, the judicial power would be incomplete and entirely inadequate to the purposes for which it was conferred by the Constitution.”
The United States Marshals Service will oversee the auction at a Midtown Manhattan hotel. Potential buyers for the stake in Roc-A-Fella Records must bid at minimum, $1.2 million, with a $240,000 deposit for the right to participate in the sale of the share. In addition to his debt to Webber, the sale of this stake will also satisfy a debt with the New York City Department of Social Services to collect $145,096 in unpaid child support owned to Rachel Roy and Cindy Morales for two daughters and a son.
