CONTRACT
Artists

Trent Reznor has now testified against his longtime manager, saying he was stunned to learn in 2003 that despite millions of dollars in earnings by his band, Nine Inch Nails, he was left with as little as $400,000 in cash and $3 million in assets. The New York federal civil lawsuit is against John Malm. Reznor contends that his former friend duped him into signing a contract that allowed Malm to collect 20 percent of the singer’s gross earnings rather than net earnings. A lawyer for Malm, said in an opening statement that his client worked many years for no salary and kept nothing secret from Reznor. Reznor said that pair created their own production company and managed sales of merchandise but the expenses piled up, draining large portions of the millions of dollars the band earned with its albums and concert tours. Reznor said he began to grow worried about finances when he was told during a meeting with Malm in 2002 that there was “cause for alarm.”

See: http://www.billboard.com