Janet Jackson Attempting to Privately Settle $200k Lawsuit Over Alleged Debt to Ex-Business Managers
The singer was accused of failing to pay off an over $200k debt.
Janet Jackson is one step closer to ending her $200k lawsuit over the alleged debt she owes her ex-business partners. Documents obtained by RadarOnline.com show the Rhythm Nation singer, 57, has agreed to hash out a deal with the debt collection company, Creditors Adjustment Bureau, behind closed doors after she was slapped with legal documents over the 6-figure sum.
Janet Jackson has agreed to hash out a deal behind closed doors.
Jackson, 57, filed the paperwork in Los Angeles on October 24, informing the court that all parties have agreed to work out their issues by participating "in a private mediation."
"The Stipulation Parties will enter into this stipulation to avoid unnecessary motion practice and attorneys' fees and to further judicial economy and preserve Court resources," the docs read.
She denied any wrongdoing.
"If this action is not settled and resolved between the Plaintiff and defendant Janet Jackson at medication, Plaintiff and defendant Janet Jackson shall proceed with binding arbitration in accordance with the provisions of the Agreement," the docs continued.
The parties have plenty of time to work out an agreement as a status hearing on the matter isn't scheduled until May 22, 2024.
As RadarOnline.com reported, the Creditors Adjustment Bureau sued Jackson and several of her companies in January, claiming the five-time Grammy winner failed to pay the business management firm Nigro Karlin Segal Feldstein & Bolno a whopping $238,593.88.The debt ended up being assigned to the Creditors Adjustment Bureau.
The amount was allegedly supposed to be paid by February 24, 2021, but no payment was made. The company wanted the full amount plus 10% interest.
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She was served with the lawsuit in August.
The debt collection company accused Jackson of failing to respond to the lawsuit — but her attorney came out swinging by arguing that she hadn't personally been served.
“She is a recording artist who resides in London, UK," the All for You singer's lawyer, Ronald Richards, told the court, adding that Jackson has been living overseas on a work permit since March 2021.
“Her usual place of business is in London, UK where she resides,” the filing stated.
That all changed over the summer.
RadarOnline.com told you first — after spending months trying to track Jackson down, the performer was finally served in the U.K. on August 2, documents obtained by this outlet showed.
The creditors wanted the full amount plus 10% interest.
Jackson’s companies denied all allegations of wrongdoing. The singer's lawyer fiercely defended her, telling 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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