Damon Dash’s Roc-A-Fella Stake Will Be Auctioned

Roc-A-Fella label owners, JAY-Z and Kareem “Biggs” Burke are about to have a new partner as a judge has ordered Damon Dash’s 33.3% stake in the label to be auctioned off to satisfy debt owed by the Harlem businessman.

According to Billboard, there is an auction scheduled for August 29 in New York City for the 1/3 stake that Dash has in the label, which includes the master recording of JAY-Z’s debut album, “Reasonable Doubt.” The judge ordered the sale of Dash’s stake due to non-payment of a $823,000 judgment due to movie producer Josh Weber.

Weber previously won a defamation and copyright infringement lawsuit against Dash after a dispute over the 2016 film, “Dear Frank.” JAY-Z and Biggs objected to the ruling, citing the bylaws that mandate approval from the board of directors to sell off shares. U.S. Magistrate Robert W. Lehrburger ignored their plea and ruled that Dash’s one-third ownership of Roc-A-Fella is personal property that can be seized to satisfy the judgment against him.

Earlier this week, based on federal court filings, the United States Marshals Service will oversee the auction taking place at a Midtown Manhattan hotel. Any potential buyers must bid, at minimum, $1.2 million. They would also be required to post a $240,000 deposit for the right to take part in the sale.

A source has informed Billboard that, although a potential buyer will own an equal share of the company, due to a majority vote, will most likely be unable to make business decisions without the approval of their new partners.

“Whomever buys Dame’s stake in Roc-A-Fella will be a minority owner without authority over any decision-making. They won’t have the ability to sell the copyright or borrow against the master as all decisions require majority vote,” according to the source.

Webber’s attorney, Chris Brown will coordinate the upcoming auction.

Just last month, Dash made a last-ditch effort to sell his stake to satisfy the judgment against him.

Billboard also reports that the auction will help satisfy another debt for Dash. The New York City Department of Social Services (NYCDSS) will collect money owed to them before Webber can get the money for his judgment. The entertainment executive owes $145,096 in unpaid child support to Rachel Roy for his two daughters and also to Cindy Morales for his son.

Damon Dash’s Roc-A-Fella Stake Will Be Auctioned To Satisfy Judgments