Snoop Dogg filed a lawsuit against Pabst Blue Ribbon this week alleging that the beer retailer breached a contract the two had previously made over a malt liquor drink.
The rapper signed a three-year agreement in 2011 to be the brand ambassador for Blast by Colt 45, a line of sugary malt liquor drinks he would promote on social media and during concerts. He got $250,000 up front, and another $20,000 every ten times he mentioned the beverage.
But then the American brewing company was sold for $700 million in the spring of 2014, and Snoop claims he’s entitled to ten percent of the net sales price because of a “phantom equity clause” he had in his contract.
From “The Hollywood Reporter:”
“He cites a ‘phantom equity clause’ in his endorsement contract, which supposedly states in its subsection (a): ‘In the event that the Blast by Colt 45 brand or the entire Colt 45 brand family is sold … during the 3-year Term of the Agreement or within two (2) years following the end of the Term, Consultant [i.e. Mr. Broadus] will receive 10% of the net price of such sale.'”
Basically, he claims his contract called for him to receive a portion of the sale price if the brewery sold the Colt 45 line before January 2016. In his lawsuit, Snoop Dogg said the company has failed to pay him anything.
However, a Pabst spokesman told Business Insider that the rapper hadn’t even contacted his company.
“We are investigating the matter and would be happy to talk to Snoop or his representatives to try to get to the bottom of this,” the spokesman said. (RELATED: Snoop Dogg Got Really High At The White House)