Sly Stone: Funk Icon Files $50 Million Lawsuit Against Former Manager

Rock & Roll Hall of Famer Sly Stone of the legendary funk collective, Sly & The Family Stone, filed a lawsuit on Thursday Jan. 28 for approximately $50 million against his former manager Jerry Goldstein citing fraud related charges over more than 20 years.

In the filing, prepared by Stone's attorney Robert J. Allan, the 66-year-old singer accuses Goldstein of breach of contract, breach of fiduciary duty, and conversion for diverting, converting and misappropriating his royalties and assets for over 20 years.

The suit demands a full accounting from royalty collection companies to determine actual amounts taken but they are estimated to be in the $20-30 million range and also seeks punitive damages.

"On the eve of the Grammys that celebrate the best of our artists, we see a dark side of the music business where some of these artists are being robbed of their intellectual property and the fruits of their genius by unscrupulous people who prey on their trusting nature and lack of business and legal knowledge," said Stone's attorney Allan, of Allan Law Group.

Stone and his attorney claim that Goldstein "used the proceeds of his scheme to live a lavish lifestyle and purchase luxurious properties worth over $80 million through trusts and offshore corporations."

The singer has been joined in his suit by radio mogul Ken Roberts, a former manager, who is pursuing claims against Goldstein for fraud and identity theft.

Roberts' claim accuses Goldstein of stealing the name and identity of a company Roberts incorporated in 1975 when he managed Sly Stone so that Goldstein could obtain Stone's royalties from Broadcast Music, Inc. (BMI).

BMI, a performing rights organization, has been cooperating with Stone's counsel and has refused to pay any further royalties for his musical compositions to Goldstein or his collaborators.

Defendants Warner Chappell and Sony Music have refused to pay any royalties pending a resolution of Stone's claims.

Stone and Roberts' lawsuit seeks compensatory damages, declaratory relief, a royalty accounting, appointment of a receiver and a constructive trust over the properties Goldstein and his collaborators purchased. The lawsuit also requests punitive damages against Goldstein and his collaborators for "deceitful, fraudulent, malicious, and oppressive acts," which were undertaken with intent to cause harm to Stone and Roberts.

Goldstein has yet to comment on the suit.

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For related stories, read 'Michelle Williams: Destiny's Child Singer Parts Ways With Beyonce's Dad'

& 'Donnie Simpson: Former BET Host Leaves Radio Gig.'

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