Australia’s only listed music company Vinyl Group has been sued in the New South Wales Supreme Court by companies related to the former CEO of a company it purchased in 2024.
Vinyl Group rejected Luke Girgis’ claim that he was terminated without cause and was owed a $2 million performance payment associated with acquisition of The Brag Media and payment for lost remuneration and the opportunity to earn a bonus and options.
Girgis left The Brag Media, whose publications included Rolling Stone Australia, Variety Australia and The Brag, in June 2024, which was four months after the purchase was completed.
“Vinyl Group strongly refutes this claim,” the company said in an ASX statement.
“Following an external investigation, Mr Girgis was terminated for serious misconduct, including but not limited to, financial misconduct.”
Girgis and Seventh Street Ventures, which counted The Brag Media as part of its portfolio until 2024, have filed separate civil cases with the New South Wales Supreme Court with hearings slated for 5 and 7 March respectively.
According to Vinyl Group, performance payments were contingent on The Brag Media reaching financial targets, which it allegedly failed to do.
Vinyl Group said it planned to lodge a cross-claim which is likely to argue the vendors violated the share sale agreement and allege additional misconduct by Girgis.
Azzet has contacted Girgis and Seventh Street Ventures for comment.
Girgis, also known as Coptic Soldier during his career as a hip-hop artist, acquired music publications like Tone Deaf and The Brag in 2017 for his company Seventh Street Media, which later began trading as The Brag Media.
Vinyl Group completed the acquisition of The Brag Media in February 2024 for an initial consideration of $8.1 million cash, funded by an investment by WiseTech Global (ASX: WTC) Founder and CEO Richard White via an $11 million placement and debt facility.
Vinyl Group, which provides technical and media solutions that connect musical creators, fans and brands, said last week it would rebrand its media arm, which includes The Brag Media’s former brands, as Vinyl Media.
Vinyl Group’s share price (ASX: VNL) fell by more than 7% today after the news, standing at 13 cents, down one cent from previous close, and giving the company a market capitalisation of $162 million.
