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The suit seeks to "undo years of abuse of fiduciary duty…owed to Reznor; undo the numerous unconscionable contractual arrangements and unwind the numerous companies [they] created; confirms rightful ownership of intellectual property and compensate Reznor for the millions of dollars wrongfully taken from him."
REZNOR NAILS EX-MANAGER IN LAWSUIT
Nine Inch Nail Star Files Action Against John Malm for "Fraud and Deceit" to the Tune of Millions
This could get uglier than a Nine Inch Nail video.

Trent Reznor has sued his ex-manager (and longtime friend) John Malm, along with business manager/accountant Richard Szekelyi, charging their Ohio-based J. Artist Management (JAM) company with "fraud and breaches of fiduciary duties," and swindling millions of dollars.

Reznor, who had Malm as his manager since the mid-‘80s, fired him about a year ago, and is now repped by Jim Guerinot’s Rebel Waltz.

The lawsuit was filed in U.S.District Court Southern District of New York.

The suit seeks to "undo years of abuse of fiduciary duty…owed to Reznor; undo the numerous unconscionable contractual arrangements and unwind the numerous companies [they] created; confirms rightful ownership of intellectual property and compensate Reznor for the millions of dollars wrongfully taken from him."

Reznor has petitioned the court to open up the books to determine how much is actually owed to him. His allegations against JAM include:

*Inducing Reznor to sign a five-year 1989 Management Agreement while failing to disclose and omitting material information.

*Registering the Nine Inch Nails copyright and taking 50% ownership in merchandising and the Nothing Records label, among other Reznor projects.

*Diverting more than $3 million of Reznor’s money to jointly owned corporations without his knowledge.

*Using Reznor’s and company money for personal travel, entertainment and expenses.

*A management agreement that gave them 20% of all gross monies paid to or earned by Reznor in perpetuity, even if the company is no longer managing him.

*Being entitled to 20% of all album advances, including those that have not been recorded, and giving itself the "irrevocable" right to collect income payable to Reznor, endorse his name, cash all checks payable to him, and pay itself using such monies.

Reznor is asking to retain full interest in the Nine Inch Nail name, logo and any other intellectual property, a restitution of owed money and an award of consequential and punitive damages.

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