Carter’s attorney Clay Townsend filed suit in Orlando in May 2006 against Pearlman and his label TransContinental Records which asked that Aaron be released from a contract that was signed when he was just a minor. It also asked for an accounting of royalties.
Pearlman is currently in jail for fraud and his label is currently bankrupt. The bankruptcy judge ruled in favor of Aaron saying that the contract is no longer in effect. However, the judge still hasn’t ruled on who owns Aaron’s recordings when he was with TransContinental.
Source: Useless Place
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