Univision hit with lawsuit by Disa Records founders.
June 24, 2006
According to Radio and Records magazine, in a lawsuit filed in United States District Court, Central District of California, the founders of one of Mexico’s most successful regional music companies says Univision used heavy-handed legal tactics to obstruct a five-year-old agreement under which Univision is obligated to purchase the half of Disa Records that it doesn’t already own. In 2001, Univision, based in Los Angeles, bought a 50% interest in Disa Records from the Chavez family of Monterey, Mexico, which founded the record label and continues to manage the partnership.
Disa Records CEO Patricia Chavez says, “We’ve been good partners for five years and we’re mystified at Univision’s bullying tactics. My family and I are taking this step with great reluctance only because we see no alternative.”
The suit seeks only the value of the transaction Univision is obligated to complete. “Univision’s inexplicable and irrational avoidance of its obligations to complete the sale of Disa LLC has left Empresas Chavez II B.V. and the Chavez family members no choice but to file this action,” says the suit.
Jeffrey Yorke, R&R Washington Bureau Chief
Courtesy of http://www.radioandrecords.com
