Australian pop-rock band 5SOS have landed themselves in hot water with a $2.5 million lawsuit for some sketchy-sounding business moves.
According to TMZ, the group’s former management team, YMU, filed a hefty lawsuit, claiming the band owed them a “fat cheque for their hard work securing lucrative deals.”
5 Seconds of Summer hired YMU in February and the management team secured recording and merchandising deals for the band, leading to millions of dollars in advances, but were reportedly never paid for doing so.
The Aussie group allegedly fired YMU once the new deals were locked in, just before the money started flowing in, to supposedly avoid ponying up some big-time commissions.
In documents obtained by TMZ, YMU’s commission rate for securing the lucrative deals was locked in at 15 per cent.
The management team believe the band thought they could pressure YMU into giving a discount on the decided commission rate but instead received a lawsuit.
The four-member band includes Luke Hemmings, 25, Calum Hood, 25, Ashton Irwin, 27, and Michael Clifford, 26.
They recently celebrated their 10-year anniversary as a band with the release of a new single 2011 — the year they started.
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