As RadarOnline.com first reported, earlier this year, a collections company called Creditors Adjustment Bureau filed a civil lawsuit against Jackson and her various companies.
The suit said Jackson owed her ex-business managers, from the firm Nigro Karlin Segal Feldstein & Bolno, a total of $238,593.88. The firm’s website touts, “We work alongside the world’s top artists, athletes and other high achievers across our core competencies: Business Management, Royalty, Tax and Audit.”
The debt was assigned to Creditors Adjustment Bureau which took the matter to court.
Jackon’s powerhouse attorney Ronald Richards disputed the debt. He told RadarOnline.com, "We have been working with a distant former manager who referred a bill to collections that was resolved years ago due some errors that were made with Mr. Jackson’s account. If the case was assigned for collections and they are suing as the assignee, they will be in for a big surprise as the claim is past the statute of limitations and was resolved years ago before the firm was bought out.”
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Jackson has yet to respond to the lawsuit personally but has filed a response on behalf of her companies.
In the filing, obtained by RadarOnline.com, Jackson’s companies deny all allegations of wrongdoing. Richards argued Creditors Adjustment Bureau lacked standing to bring the lawsuit.
Further, he argued that Creditors Adjustment Bureau, “has refused, failed and/or neglected to mitigate its alleged damages, and, therefore, cannot recover against Defendants, whether as alleged or otherwise.”
In addition, he said, Jackson’s companies argue “that any injury Plaintiff has suffered is a direct and consequence of the actions of Plaintiff’s own actions or the actions of others not affiliated with these answering Defendants.”
Jackson demanded the claims against her companies be thrown out immediately and plans to move for her personally to be dismissed in the near future. The judge has yet to rule.
As RadarOnline.com first reported, Janet's brother Michael's estate is currently involved in a bitter war with LaToya's ex-fiancé Jeffree Phillips over claims he allegedly stole the late pop star's property.