Kanye West is being sued by a black owned tech company MyChannel, which claims the rapper reneged on an agreement to pour $10 million into the business and also used their video technology to fuel the success of his Sunday Service project.
MyChannel accuses Kanye of breaching an oral partnership agreement, preventing MyChannel from earning millions, encouraging the company to invest at least $7 million of its own money while withholding a promised $10 million investment.
The company also accuses him of violating MyChannel’s non-disclosure agreement by copying their video e-commerce technology.
“It is this NDA that Yeezy and Mr. West breached when they launched West’s Sunday Service and its e-commerce component that included a knock-off of the MYC Video Platform,” MYC stated in the suit.
Relying on the rapper’s word, MyChannel had made a series of moves that ultimately did not pay off as the rapper failed to meet his end of the bargain.
“The founders of MYC reasonably relied on a series of promises made by Mr. West and other leaders in his organization that for six (6) months convinced them to focus 100 percent of their attention on Kanye and Yeezy, and to invest $7 Million in company resources for good measure.
“In fact, the MYC founders and other personnel moved for their Pennsylvania headquarters to Yeezy’s headquarters (first in California and then in Illinois) and worked full-time for Defendants, all at Mr. West’s insistence,” the lawsuit declared.
Kanye, who is running for president in November, had let MyChannel down when he “inexplicably reneged on his promises seemingly on a whim and walked away from the successful partnership while misappropriating MYC’s proprietary and trade secrets, netting Kanye hundreds of millions of dollars off the back of MYC,” the lawsuit further read.
