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Janet Jackson Victorious in $240,000 Battle Over Alleged Money Owed to Ex-Business Managers
Janet Jackson scored a huge victory in court after a debt collector dropped a six-figure lawsuit against the legendary entertainer, In Touch can exclusively report.
According to court documents obtained by In Touch, Creditors Adjustment Bureau informed the court on August 3 that it was dropping all claims against Janet, 58, personally.
Creditors Adjustment Bureau said the dismissal of the claims was with prejudice, meaning the claims cannot be refiled in the future.
Back in January 2023, Creditors Adjustment Bureau sued Janet and her companies Black Doll Inc., Juggernaut Productions, Rhythm Nation, JDJ Entertainment and Queendom Inc. in Los Angeles Superior Court.
Creditors Adjustment Bureau claimed it was assigned debt owed to Janet’s former business management firm, Nigro Karlin Segal Feldstein & Bolno.
In the lawsuit, the debt collector accused Janet of failing to pay $238,593.88 owed to the management firm for services provided. In court, Creditors Adjustment Bureau said the balance was due on February 24, 2021, but was not paid by Janet or her companies.
The company demanded the entertainer be on the hook for the entire $238,000 owed plus 10 percent interest.
Creditors Adjustment Bureau had struggled to track down the singer to serve her for months.
Her lawyer told the court that Janet was a “recording artist who resides in London” and had been living in the U.K. on a work permit since 2021.
“Her usual place of business is in London, U.K., where she resides,” her lawyer said in court.
In October 2023, Janet was served with the legal papers while overseas.
At the time the lawsuit was filed, Janet’s lawyer, Ronald Richards, defended the singer against the claims.
Ronald said, “We have been working with a distant former manager who referred a bill to collections that was resolved years ago due some errors that were made with Ms. Jackson’s account. If the case was assigned for collections and they are suing as the assignee, they will be in for a big surprise as the claim is past the statute of limitations and was resolved years ago before the firm was bought out.”
Janet’s lawyer added, “We will vigorously defend the action and bring a cross-complaint against the actual management firm. This will backfire on them if they actually filed a complaint. Many times, when parties have weak claims, they assign them to collection to avoid the legal fee expense.”
“This looks like one of those cases as they were talking to me recently and when they couldn’t respond to my inquiries and questions, it looks like they gave up and sent it to collections,” he said, “Janet Jackson pays all of her vendors and holds them to a high standard of care. She will not pay for managers that do not perform according to the contract or have charged her for fees improperly.”
Janet never personally responded to the lawsuit but her companies denied all allegations of wrongdoing in a response.
A lawyer representing her companies argued the debt collector had “refused, failed and/or neglected to mitigate its alleged damages, and, therefore, cannot recover against Defendants, whether as alleged or otherwise.” The debt collector previously dismissed all claims against Janet’s companies.
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