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Talent Manager’s Fraud Claim, Over Buyout of His Share of Company Formed With Client, Is Struck Down
It isn’t unusual for talent managers and artists they manage to cofound and operate businesses together. For example, a recording artist and manager may join together to establish their own record label. If an artist/manager partnership or joint-venture projects are to be part of the relationship, a manager will want the artist to sign a conflicts-of-interest waiver. This is because a manager owes an artist a fiduciary obligation based on the artist entrusting the manager to in good faith primarily further the artist’s career.
Sometimes, though, the talent manager may claim the artist has violated the manager’s rights via the joint-business entity, as recently happened when talent manager Michael Gruen sued Josh Richards, a management client, actor, producer and social-media influencer over their Los Angeles-based CrossCheck Studios.
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