The Fray Files Suit

The suit, filed in U.S. District Court in Denver, states that Latterman’s company, Gregg Alan Corp., doing business as A-Squared Management, obtained partial ownership of songs written by the band’s Joseph King and Isaac Slade when they signed a publishing deal with EMI in 2005.

Later, when The Fray entered into a management deal with A-Squared, the group claims it was never advised that Latterman held an existing agreement with EMI that granted his company a 35 percent interest in music publishing income and a 50 percent interest in the label’s share of copyright ownership.

Instead, Latterman allegedly told band members GAC was simply getting a “finder’s fee” in connection with the publishing agreement, which led to The Fray being deprived of “valuable assets and income that should rightly be theirs but for the defendants’ fraud,” the suit says.

The Fray claims GAC has earned at least an additional $700,000 from the publishing deal on top of $2.1 million for representing the band.

Along with accusations of fraud, the filing lists a handful of other charges including breach of fiduciary duty, constructive trust, unjust enrichment and breach of contract.

A spokesperson for Gregg Latterman and A-Squared called the band’s claims “meritless” and said the suit is based upon “false and misleading accusations,” against which Latterman and co. plan to mount a vigorous defense.

“It is clear this is nothing more than a tactic in the band’s effort to avoid their contractual obligations to A-Squared and Gregg Latterman,” the statement said. “A-Squared began representing The Fray in late 2004, well before the release of their first album. Mr. Latterman and his team played a critically important role in establishing the group as a successful touring entity while achieving worldwide sales in excess of 4 million albums.

“Before The Fray signed their music publishing deal with EMI, Mr. Latterman clearly explained to the band and their attorney that his company had an arrangement with EMI whereby he stood to gain if the band signed to EMI, and as a result, he had no part in advising the band with respect to that deal.

“The band elected to enter into the EMI agreement because it was the best publishing deal offered to the band. As The Fray and their attorney know well, this arrangement did not reduce by one cent The Fray’s publishing earnings or reduce The Fray’s ownership of their copyrights.

“Mr. Latterman has poured his heart and soul into making The Fray a successful group. Neither he nor A-Squared breached their contractual obligations or otherwise engaged in wrongdoing.”

The suit seeks compensatory damages believed to be in excess of $3 million, punitive damages, attorneys’ fees and costs,a termination of the management agreement and a declaration that GAC is holding publishing and copyright income from EMI as a constructive trustee for The Fray.