NEW YORK (Hypebot) — Warner Music is reportedly in the final stages of negotiating a deal to distribute 12 Tone, the new label helmed by Doug Morris, the former CEO of WMG, Universal and most recently Sony.
When Warner Music Group fired Doug Morris in 1995, their former chief executive filed a $50 million wrongful termination lawsuit. In court proceedings, WMG alleged that Atlantic Records, one of the labels under Morris’ supervision, regularly sold CD’s off the books to music distributors and retailers and pocketed the money.
The practice, known as selling ‘cleans,’ allegedly cheated the company, musicians, and songwriters out of millions of dollars.
3 years later, Morris is reportedly close to signing and deal with WMG for his new label 12 Tone, according to multiple sources.
“Why would Warner hire a guy they had fired for cause?” an industry veteran told Page 6. “How do these people get away with it?”
WMG and Morris have thus far not commented not publicly commented on the story.
