3LAU Nears Settlement to End Lawsuit Over $11M NFT Auction Profits – Billboard
3LAU is close to a settlement to end a lawsuit that claims the DJ refused to share the proceeds of an $11.7 million NFT auction with a musical collaborator.
Citing the fact that the two sides were “close to a settlement in principle,” a federal judge in New York on Monday temporarily dismissed the lawsuit filed by the musician. Luna Aura over the huge proceeds from the much publicized NFT auction of his album Ultraviolet.
Aura (real name Angela Anne Flores) started the lawsuit last fall, claiming 3LAU (real name Justin Blau) offered her only $25,000 from, although she said she was owed 50 percent royalties from one of the songs on the album called “Walk Away.”
“Despite this financial downturn, Defendant only offered Luna Aura a fixed one-time payment of twenty-five thousand dollars as compensation in connection with the sale of Ultraviolet and ‘Walk Away’ NFTs,” her attorneys wrote at the time. 3LAU vehemently denied the allegations, and his manager said they would “vigorously defend the lawsuit.”
Specific terms of the preliminary settlement were not disclosed in public court records, and neither side provided additional details when contacted by Billboard. If the agreement is not finalized within 30 days, the judge said the parties could reopen the case and resume litigation.
Even during 2021’s fever dream craze for NFTs (non-fungible tokens), 3LAU’s February 2021 auction stood out as remarkable. By selling 33 collectibles related to his 3-year-old album Ultraviolet — The NFTs gave buyers access to vinyl copies, unreleased music and other special experiences — The DJ producer raked in $11.7 million. “It was one of those moments in my life where I was like, ‘Holy s—,'” 3LAU shared Billboard at the time. “‘I think we just changed everything.'”
But according to Aura’s lawsuit in November, he did not share the profits with a key person who helped make the album. She says her contract guaranteed her a 50% recording royalty on “Walk Away” and that she also owned 30% of the underlying musical composition. The lawsuit did not specify exactly how much money he believed she was owed from the auction.
In a statement to Billboard after the case was filed, 3LAU’s manager Andrew Goldstone strongly denied the allegations: “These allegations are without merit and we will vigorously defend the lawsuit that was just filed yesterday without warning. There are no set standards for how to approach an NFT project like this, which involved much more than just the music. Justin’s team tried for months to reach an agreement with Flores in good faith, but she stopped responding and instead chose to file a lawsuit.”
Goldstone declined to comment on Monday’s order announcing the close settlement. Aura’s lawyer, Moish E. Peltzdid not return a request for comment.
