On Friday (March 21), an 8 person jury in Manhattan federal court found Lyor Cohen, the Chairman of Island/Def Jam Music Group personally liable for fraud, willful copyright infringement, and wrongful interference with contract.

The verdict stemmed from a lawsuit filed by TVT Records over an album by Cash Money Cliq.

TVT claimed that Cohen told Gotti he didn't have permission to deliver the album to TVT and is seeking $30 million in damages.

"The verdict against Mr. Cohen, personally, for fraud shows that there are some very serious problems confronting Def Jam and Universal Music Group," said Peter Haviland, trial lawyer for TVT Records.

Kevin Liles, Vice President of The Island Def Jam Music Group, testified at trial earlier in the month that he witnessed Cohen tell Gotti "No f*cking way, we are not doing this project" around August of last year, just before TVT was going to release the album.

The jury unanimously found both Def Jam and Lyor Cohen personally liable for interference with TVT's contract.

Cohen was also found personally liable, along with Def Jam, for willful copyright infringement related to Def Jam's distribution of TVT's copyrighted recording "Get tha Fortune" which appeared on a DVD entitled "Irv Gotti Presents: The Inc." released in July 2002.

Cohen was also found liable for willful copyright infringement related to the recording "The Rain," which Mr. Gotti had made for TVT to be released on the CMC album but instead appeared on the Def Jam release of the CD version of Irv Gotti Presents: The Inc.

Cohen denied knowledge that Gotti had been working on the CMC project, despite the fact that the multi-platinum selling album of Ashanti, released in April 2002 included in its artwork reference to the CMC album.

The artwork for the Def Jam-distributed CD Irv Gotti Presents: The Inc mentioned the album and advertisements also ran in hip-hop publications featuring Ja-Rule.

The same jury which found Cohen and Def Jam liable will determine damages on April 28.

Def Jam lawyer Charles Ortner said he will appeal the verdict on the grounds that Judge Victor Marrero refused key evidence to be presented to jurors.
This decision comes after problems continue to rise for Def Jam and its relationship with Murder Inc Records. Murder Inc Records abruptly moved out Def Jam offices last Friday due to undisclosed circumstances. Sources close to the label told SOHH.com exclusively that employees of Murder Inc were told to pack up their desks as they were being kicked out of the building due to FBI investigations. However, Lyor Cohen rebutted these claims stating that Murder Inc's move was due to their need for more space for its expanding film division, producer division, etc. Critics say that Lyor Cohen's statement on Murder Inc's move is an obvious "damage control" tactic to maintain the image of Def Jam Records and the public's view of its relationship with Murder Inc.