Phillips is a longtime veteran and former CEO of AEG Live who has sponsored tours for Bon Jovi, Justin Bieber, Kanye West, The Rolling Stones and Prince.
Loeffler is a longtime music manager, tour manager and film producer who directed the 2019 film “Incredible” by Why Dont We.
Why Don’t We was founded in September 2016 with the band’s business being run as a manager-run LLC by Phillips and Loeffler with ownership interests for all five group members. The LLC would retain the rights to administer all aspects of the men’s careers and own their creative output, while the five members would be classified as employees according to the management agreement signed by each member.
The next year, Phillips gave up his role as managing director of one of the two limited liability companies (PDM III and Signature Entertainment) that fund and exclusively manage Why Don’t We and the solo artist EBEN to take a job as head of the LiveStyle company emerged from the bankruptcy of the EDM promoter SFX. Phillips returned to the band’s management in 2020, saying Loeffler “revoked his previous agreement to allow the plaintiff to resume the role of manager.” [of Signature Entertainment]According to a lawsuit filed on Thursday (August 26) in the Los Angeles Superior Court against Loeffler.
Phillips wants a judge to remove Loeffler from PDM III and return control to Phillips, a legal process known as dissociation in which a judge orders the termination of a manager’s proxy if the manager is found to be inappropriately or “willful (and ) persistently committed ”a material“ material violation ”of the company’s financial interests.
Loeffler – whose legal team is led by a Florida attorney Michael R Levin with Baker Law – Billboard said in a statement that Phillips’ lawsuit “is unfounded and in retaliation for the lawsuit we brought against him.” He added, “The allegations now made by Mr. Phillips are unfounded and exposed in court. “
Phillips also claims Loeffler abused members of Why Don’t We and “irreparably damaged” the management company he and Phillips founded to promote the up-and-coming boy band’s careers.
Hollywood attorney and litigator Howard King of the Los Angeles-based law firm King, Holmes, Paterno & Soriano represents Phillips and alleges in the complaint that “Loeffler with [the band] in a rental property that had been secured for them to develop music, “he exhibited” nightmarish behavior “including” daily verbal abuse, yelled at her at the top of his head, sometimes for 10-20 minutes “and allegedly” forced “. The five members shared two small bedrooms, although the house had an unused, unused bedroom upstairs. “
The lawsuit also claims that Loeffler would monitor “almost every move they made” and “barely let them leave the house.” Loeffler did not allow them friends or visitors, did not feed them properly and set a house alarm every night for which they did not know the code to ensure that they did not leave. “
Lawyer and litigator Alan Gutman of Gutman Law represents the band and the individual careers of its members, all of whom worked with Loeffler as minors.
“My clients, the artists known as Why Don’t We, support Randy Phillips just as he has supported us since the beginning of our careers,” Gutman quoted the band as saying.
Loeffler denied the allegations in a statement to Billboard, saying the charges were “without merit and in retaliation for the lawsuit we filed”. [Phillips]. “
King said the decision to quit Phillips shocked the band, arguing that the loss of the record deal was Loeffler’s fault and “badly damaged Signature and PDM III’s most valuable assets (his relationship with Why Don’t We and Eben) , possibly irreparable. ”
“After years of mental and financial abuse by Dave Loeffler and his staff, Randy Phillips is trying to salvage a deteriorating relationship with rising stars Why Don’t We and Eben with the Phillips production companies,” King told Billboard in a statement. “Loeffler’s mistreatment of these primary corporate assets seriously jeopardizes corporate survival. For unknown reasons, except perhaps professional jealousy, Loeffler has tried to disrupt Phillips’ role as the main manager of these artists. “
Phillips also accuses Loeffler of delaying the release of the band’s second album, The Good Times and the Bad Ones, until January 2021, when it was released under a licensing agreement with Atlantic. On this album, Phillips claims that Loeffler hired an unqualified friend to produce the album despite his lack of experience, and assigned him 30% of the record’s release fee. Phillips also accused Loeffler of withholding a $ 1 million disclosure advance for members of Why Don’t We during the pandemic
King calls on a judge to revoke Loeffler’s title of manager at PMI III and “create further facilities that the court deems to be fair and appropriate”. Loeffler is suing the individual members of Why Don’t We for precautionary breach of contract in connection with the Atlantic Deal and is suing Phillips for unauthorized interference and demanding compensation. No hearing is scheduled in either case.