CMJ Sued for Nearly $1 Million After Failed Merger

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CMJ, the organization behind the annual New York City music festival as well as the long-running magazine, has been sued for nearly $1 million, as The New York Times reports. The lawsuit is over a failed merger, planned four years ago between CMJ and Metropolitan Entertainment, a management/promotion/production company.

According to the suit, CMJ now owes Metropolitan over $600,000 in loans, which were made in 2009 and 2010 to help fund the festival and were never repaid. With interest, that sum is almost $800,000, and Metropolitan also seeks an additional $99,000 in fees for its legal costs. The New York Times writes that CMJ also "fraudulently transferred its assets to another corporation to shield them from Metropolitan," according to the lawsuit.

The 33rd annual CMJ Music Marathon began yesterday, with over 1400 artists participating through Sunday. CMJ was founded in 1978 as a college radio trade publication.

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