Marion “Suge” Knight lost control of his Death Row Records label following a ruling by a judge that ordered a bankruptcy-trustee to oversee all financial matters due to a history of the label being improperly managed in accounting matters. It is reported that the label has anywhere from $1 to $10 million in assets, but more than $100 million in debts.
The ruling was made on Friday, July 7th by Judge Ellen Carroll – who found that the label finances were in “disarray” after Knight had testified that he hadn’t been hands on with the label’s finances in about ten years.
Suge Knight’s attorney argued against the judge’s statements by pointing out that Knight had renamed the struggling record label ‘Tha Row’ and was working on a distrubution deal for Death Row’s impressive rap catalog – which includes albums by the late Tupac Shakur along with hit rappers Snoop Dogg and Dr. Dre.
Suge Knige had filed for bankruptcy protection in April of 2006 to attempt to stop the State Court from trying to place a receive in Death Row Records – due to Knight missing court dates in a lawsuit filed against him by Michael and Lydia Harris. The couple have claimed that they own 50% of the gangster rap label.
In that lawsuit, the couple have claimed that they invested $1.5 million dollars to help start up the label. A judge had awarded a default judgment of $107 million following Knight’s failure to give the court information on the label’s finances.