Death Row Records Company was auctioned for $24 million, which had released albums by Snoop Dogg, Dr. Dre, and Tupac Shakur in the past. On June 24th, Global Music Group Inc. purchased the music label and its black catalog and its current artist contracts because the company had gone down due to debt and mismanagement.
Financial problems came to Death Row Records recently when a former couple, named Lydia and Michael Harris, took the company to court and stated that they had helped found the label. They won a judgment of $107 million and tried to collect it in 2006. The label was not able to pay the amount and filed bankruptcy in April of 2006 and claimed debts of over $100 million. Also in 2006, a federal judge ordered for a bankruptcy trustee to takeover Death Row Records and said that the label had gross management. The decision to file bankruptcy saved the company from the decision of the court to appoint someone to take control of the record label and its assets.
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