Former Spotify bigwig Troy Carter sued by Scooter Braun over $10million loan
Former Spotify global head of creator services Troy Carter, his wife and his company Atom Factory have had a suit filed against them by mega-manger Scooter Braun after allegedly failing to pay back a $10 million loan.
The suit – filed in LA Superior Court on Wednesday – alleges that the former Spotify bigwig (who left the global streaming giant earlier this month) has defaulted on a loan which was secured under a June 3, 2016, promissory note in excess of $10 million.
According to the note, Ithaca agreed to help Carter and Atom Factory – his management company, a division of Coalition Media Group which he founded in 2007 – in a legal dispute.
They agreed that if AFACT (Carter’s LLC) settled the arbitration, Ithaca would be paid the cash proceeds received by Atom Factory from the arbitration.
Apparently, Carter used Atom Factory’s Culver City, California, property as collateral, and signed over the deed of truth plus the assignment of leases and rents to Ithaca around September 23, 2016.
But according to the suit, Atom Factory settled the matter themselves in March 2018, which violates the terms of the note. The suit also claims that AFACT committed intentional interference when they transferred the proceeds of the settlement to an unknown recipient so they were not accessible by AFACT, breaching the agreement further by not paying back the money owed.
Although Ithaca sent a written notice in August which demanded AFACT uphold the terms of their agreement, they have not been paid.
Carter has since backflipped on his initial statement to TMZ on Wednesday in which he said that he didn’t borrow money from Ithaca. By Thursday he had told them that he did, in fact, owe Ithaca money, and that the amount to be repaid was being negotiated when the lawsuit was filed.