Judge OKs Suit Against Record Firms, AFTRA

A federal judge in Atlanta has given the go-ahead to a racketeering lawsuit against the nation’s biggest record corporations and the American Federation of Television and Radio Artists’ Health and Retirement Fund.

The suit, filed four years ago by more than a dozen veteran recording artists, contends that Curtis Mayfield, Sam Moore and other stars had been cheated out of health and retirement benefits by such entertainment giants as Warner Music, MCA, Sony Music, Bertelsmann, EMI Music and PolyGram.

According to the suit, labels owned by the corporations failed to submit accurate contributions to the AFTRA fund and also neglected to provide complete documentation of those contributions--as required by law under a 1954 agreement. The suit also contends that AFTRA failed to properly collect contributions from the companies.

Denying a motion by the companies to dismiss the suit, U.S. District Court Judge Clarence Cooper said there was evidence from which a jury could infer a scheme to defraud the fund and the artists. The judge also said there was “no question” that the artists had “suffered direct injury.”