 Ja Rule recorded tracks for TVT in 1994 |
Record giant Island Def Jam Music Group has been ordered to pay $132m (�85m) to independent label TVT after it prevented the label from releasing an album by rapper Ja Rule.
The New York court ruling on Tuesday follows a jury's verdict in March that Island Def Jam Music Group and its chairman Lyor Cohen were liable for fraud, copyright infringement and interference with a contract after preventing the album's release.
The still-unreleased record features material the rap star recorded for TVT when he was singed to the label in 1994. He is now one of Island Def Jam's biggest acts.
Originally TVT had been seeking $30m (�19.3m).
The label's president, Steve Gottlieb, said the settlement - $108m (�68m) in punitive damages and $24m (�15m) in compensatory damages - had sent out a message to major record companies.
'Bullies'
"The award is a clear signal from the jury that corporate players in positions of overwhelming dominance will be held accountable for their misdeeds," he said.
Peter Haviland, TVT's lawyer, added: "Def Jam and Lyor Cohen have been bullies for far too long. They finally got caught."
But a lawyer for Island Def Jam said the company would be appealing the ruling, saying that while the smaller label was entitled to release the record and to compensation for its lost earnings, it was not due such large damages.
Island Def Jam attorney Matthew Dontzin said: "We will immediately and vigorously appeal the verdict. We are confident that the verdict will not withstand the scrutiny of an appellate court."
Ja Rule recorded the tracks for TVT when he was in the rap group Cash Money Click in 1994. He was later dropped by the label.
The legal case was filed in August last year, just before TVT planned to release the album, which included new tracks.
Agreement
Ja Rule, who has since signed to Irv Gotti's Murder Inc, which was part of Island Def Jam, said he would honour his earlier contract and finish recording the unfinished debut album for Cash Money Click.
The legal case said Mr Cohen had agreed to allow Ja Rule to finish recording the album, and TVT had paid a $400,000 (�258,000) advance for it.
The suit also claimed it TVT had spent hundreds of thousands of dollars more producing the songs.
The suit also said Def Jam had used one of the songs, The Rain, without TVT's permission.