Famous Rapper’s Headphones Actually Not-So-Famous Ex-Hedge Fund Manager’s Headphones

Steven Lamar is entitled to 0.8% of what Dr. Dre got from Apple for Beats.
Not Kendrick. (ROAM)

Not Kendrick. (ROAM)

Since almost no one heard of Kendrick Lamar in 2008, it’s safe to say that a high-end headphone called “Beats by Lamar” might not have generated as much attention then as Beats by Dre. But to hear one man tell it, that’s maybe what they should have been called, if not in reality for marketing reasons than certainly for apportioning the profits reasons.

There are two stories about how the now-ubiquitous and now-owned-by-Apple headphones came around. The official history has Dr. Dre complaining to legendary record executive Jimmy Iovine that Apple’s shitty earbuds made his music sound terrible. Former hedge fund manager Steven Lamar remembers things a bit different: It was he who suggested the whole idea to Dre and Iovine, who, he says, eventually conspired to screw him out of his rightful 4% on every Beats headphone sold (and also sue him for calling himself Beats’ “co-creator”). Of which there were a lot.

Well, three-quarters of a Los Angeles jury agrees Colin Kaepernick’s favorite personal speakers have a little bit of Lamar in them, and that Dre and Iovine must thus give Lamar one-fifth of what he was asking for, which he can now use to fund the new headphone company he’s founded to destroy Beats by Apple.

An ex-hedge fund manager who claims to have been squeezed out of Beats Electronics by co-founders Dr. Dre and Jimmy Iovine ended four years of legal maneuvering with a $25 million payday….

Lamar contended he was owed $130 million in royalties from a dozen models of the headphone, while Dre and Iovine countered the settlement was meant to cover only the original Beats Studio…. Wednesday’s 12-member jury verdict in favor of Lamar credited him with royalties for sales on three Beats models: the Studio 2 Remastered, the Studio 2 Wireless and the Studio 3.

OK, Steve, just give Dre and Iovine a few minutes to fish that out of the clothes they were wearing when they sold Beats to Apple for $3 billion.

Ex-hedge fund manager gets $25M payday in Beats suit [N.Y. Post]



Ex-Hedge Fund Manager May Need New Divorce Strategy

Being a pain in the ass may be fun, but it is super-expensive.

Hedge Fund Manager Wants 35 Percent Of Ex-Wife's Shoe Collection For Reasons Not Entirely Clear

Daniel Shak is the founder of SHK Management, a hedge fund that reportedly "pulled the plug on its sole investment, spread trades on Comex gold futures," last year. Daniel Shak is also the ex-husband of Beth Shak, who he divorced three years ago and is now suing for allegedly hiding assets in an attempt to cheat him out of settlement money. The assets in question? Twelve hundred pairs of designer shoes, which Shak claims his former wife "hid" from him in a "secret room." The way DS sees it, the footwear collection, which includes "Christian Louboutins and other high-end designer shoes" is worth approximately $1 million and he wants at least 35 percent. The way Beth Shak sees it, this is crazy (“I’m shaking my head over this whole thing,” she told reporters. “He is saying he didn’t know the closet in our master bedroom existed") and she doesn't understand why her ex is going after her shoes now. At this time there appear to be a few possible explanations: a) Daniel is raising money to re-launch his fund (he told the Journal, after liquidating SHK in January 2011, that he'd be "trading again in a few weeks," though it's unclear if that happened). b) He's got gambling debts to repay ("A poker lover himself, he was reached at a card table yesterday but declined to comment"). c) He and John Mack are going to sell them out of the back of a truck. d) He just really appreciates women's shoes. e) Other Hedgie sues poker pro ex-wife over her 1,200-pair designer shoe collection [NYP] Related (...?): Hedge Fund SHK Liquidates, Rattles Gold Market