When things go sour... a label rescinds its offer due to a single "peaking" and things go south.
Here, "Supafly" financed the artists Test Drive under a joint-venture agreement. However, the partners (defendants) tried to cut plaintiff-financier out of a major record deal by inking a side-deal. As a kicker, defendants allegedly never had an exclusive recording agreement with the artists, and therefore a likely breach of reps and warranties in the joint-venture agreement.
Supafly Entertainment, Inc. v. IM Music, Inc., No. 08-cv-60440-WJZ (S.D.Fla filed Mar. 27, 2008)