The "99 Problems" star hit headlines on Friday, May 4, after he was summoned to appear in a NY court on Tuesday, May 8, to answer questions about the deal he signed with Iconix Brand Group bosses, who purchased the streetwear company for $200 million over a decade ago. Exactly how long for the deposition, as well as its location, was left to be determined between the parties.
In a court filing last week, the SEC said Jay-Z, whose real name is Shawn Carter, had failed to respond to subpoenas served in November and February.
He also said that his testimony would not be relevant to the investigation.
In 2016, and again in March of this year, Iconix publicly reduced the estimated value of the Rocawear brand, by $169 million in 2016 and again by $34 million this year.
"We are aware that the SEC is seeking information on Iconix's financial reporting". The current management team at Iconix is different from the one in charge when the SEC began its investigation into the accounting at the brand management firm.
Alex Spiro, an attorney and partner with Quinn Emanuel Urquhart & Sullivan, LLP, who is representing Jay-Z in the case said that he was "pleased with the decision".
Carter's attorney's say his schedule is especially hectic right now, with a tour about to kick off. The judge has set a preliminary date of May 11th for the testimony, which Jay's filing says will "impair the work of many individuals and entities who are preparing for the tour and will hinder my own work in preparation for the tour". The SEC told Judge Gardephe in his response papers that Carter has been "ducking" testimony for months. And while court documents submitted by Carter's lawyers noted that almost 11,000 pages of documentation have already been provided to the SEC, Judge Gardephe said that Carter's testimony might include information not already in the SEC's possession.
Gardephe said Tuesday he would not impose a time limit, saying that could be an incentive "run out the clock".
Now, Jay-Z appears to be cooperating somewhat.