*Ne-Yo’s legal battle with his former business manager has come to end, with a federal court judge dismissing the singer’s $8 million lawsuit.
TheJasmineBrand reports that the judge threw out the suit on March 3, saying Ne-Yo (real name Shaffer Chimere Smith) failed to show any evidence to back up his allegations against Kevin Foster and the consulting firm he worked for, Vernon & Co. swindled him out of millions of dollars.
At the heart of the case are accusations Ne-Yo made earlier this year that Foster and Vernon & Co. swindled him out of millions of dollars. In court documents, the singer/producer stated that he worked with Foster since 2005. During this time, Ne-Yo says Foster moved money from his accounts without permission, forged his name on bank loan documents and invested his money into a water company he was behind. At the time, the company was already close to going bankrupt.
Foster’s job was to manage and safeguard Ne-Yo’s money in order to make sure he was financially situated to maintain his accustomed lifestyle for the remainder of his life. In addition, Foster’s duties included protecting Ne-Yo from financial ruin, and mitigate the risk of frivolous spending.
Overall, Ne-Yo sued Foster for more than $8 million. Broken down, that amounts to the $4.5 million dollars Foster moved out of Ne-Yo’s bank accounts plus $3.5 million in fees Ne-Yo paid Foster over the years.
In response, Foster countered Ne-Yo’s argument, claiming the entertainer signed a deal with Vernon & Co. to manage his finances and pay them 5% commission on gross revenues. Detailing his position, Foster said he was tasked with handling some of Ne-Yo’s finances and business transactions, including advising him on investments.
Despite this, Foster denied he was supposed to maintain Ne-Yo’s budget to ensure he was financially situated to maintain his accustomed lifestyle for the rest of his life. Foster goes on to claim that although he did have control of Ne-Yo’s bank accounts, he never committed fraud, failed to file his tax returns, make inappropriate transfers to himself from the vocalist’s bank accounts nor did he forge bank documents to take out a loan in his name.
As a result, Foster demanded that Ne-Yo’s lawsuit be dismissed. In Foster’s eyes, any decision he made with Ne-Yo’s money was legal because the singer granted him that power to manage his finances. With that, Foster said he owes Ne-Yo nothing from his lawsuit.