Mullen drums up legal action

[daveyg]

Mark Paul
The Sunday Times
Published: 17 February 2013

Larry Mullen, the U2 drummer, has become the second member of the band to launch a legal action against Dublin accountant Gaby Smyth, who is already being sued for €4.8m by bassist Adam Clayton.

Clayton, who is suing Smyth and Bank of Ireland Private Banking for alleged negligence over the theft of cash by his former housekeeper, also filed a fresh High Court action last week. It named Smyth and two of his business partners, Jill Percival and Pat Cleary, as defendants. Clayton did not name the bank in his latest suit, while Mullen’s suit named only Smyth.

Smyth said he would “prefer not to talk about it” last week. Clayton and Mullen did not respond to queries put to U2’s representatives.

Clayton’s action against Smyth, a long-time associate of U2, stems from theft by his former housekeeper, Carol Hawkins. She was jailed in 2012 for seven years for embezzling €2.8m. Hawkins had used the cash to fund a lavish lifestyle and to buy an apartment in New York.

In his negligence case against Smyth and the bank, Clayton alleges that his financial advisers “missed” Hawkins’s actions. He is seeking €4.8m from Smyth and €4.4m from the bank.

Activity surrounding Clayton’s negligence has picked up in recent weeks with several new filings. There had been a lull after Hawkins’s criminal trial last summer.

The case is due back in court on April 24.

At a previous court hearing, Clayton said he was introduced to Smyth by Mullen in 2001. Mullen’s case is for breach of contract.

[jick]

With Clayton and Mullen Jr. filing cases about money, it seems that their wealth was not well-protected and they might even be financially less than what they expected.  They will also be having a lot of legal fees. 

At the end of the day, this means more bills to pay.  So we can expect them to speed up work on their new album, get on tour sooner, and perhaps license some of their back catalog of songs for TV commercials.

Cheers,

J

[acr0bat]

With Clayton and Mullen Jr. filing cases about money, it seems that their wealth was not well-protected and they might even be financially less than what they expected.  They will also be having a lot of legal fees. 

At the end of the day, this means more bills to pay.  So we can expect them to speed up work on their new album, get on tour sooner, and perhaps license some of their back catalog of songs for TV commercials.

Cheers,

J

Something we can agree on!

[Pocket Merlin]

With Clayton and Mullen Jr. filing cases about money, it seems that their wealth was not well-protected and they might even be financially less than what they expected.  They will also be having a lot of legal fees. 

At the end of the day, this means more bills to pay.  So we can expect them to speed up work on their new album, get on tour sooner, and perhaps license some of their back catalog of songs for TV commercials.

Cheers,

J

Something we can agree on!

Hooray doing it for the money!

Whatever. I just want a new U2 album.

[daveyg]

I like the bit "He is seeking €4.8m from Smyth and €4.4m from the bank." after "Clayton’s action against Smyth, a long-time associate of U2, stems from theft by his former housekeeper, Carol Hawkins. She was jailed in 2012 for seven years for embezzling €2.8m." So the €9.2m he's suing for should well cover Adam's loss of €2.8m plus bills, I rekon. I always expected they were always about the money!

[xy]

And the biggest band on the planet coming off the biggest tour ever would need money....why, again ?

[JTBaby]

Yes I'm sure they are on the brink of poverty.

Rolling eyes ad infinitum.

[stigman]

Have you people got any sense it doesn't matter how much they are meant to be worth this guy breached his contract and none of us will know figures cause U2 keep their affairs private so please try and stay away from rumours try getting out for some fresh air!!

[JTBaby]

Someone's taking all this a bit seriously !

[stigman]

No I'm not its just sad that these stories make these forums so many know alls about the place!!

[JTBaby]

You're rushing to defend an action that no one is seriously attacking.

[jick]

4 million Euros is big money for anyone.

When you assume you have 4 million, there are things you spend on that require maintenance costs and that you would not have spent on if you didn't have that money.  Maybe you have two more employees. Or you got an apartment or beachhouse. Or that yacht or private jet.

Now that you realize you have 4 million less than you assumed, you cannot just easily sell your acquisitions or fire those employees you hired.  So there are still regular bills to be paid that should not have been there had you known there was 4 million less in your bank.

Plus, the legal fees - and lawyers can charge an arm and a leg, plus a percentage of what is to be recovered.

Generally, higher financial status in life means higher cost of living.

So this development simply means Mullen and Clayton will have more urgency to generate income, and one way is to release the album sooner than later.  The problem is, there are also other way to make that income such as leasing songs to a TV commercial or re-releasing old albums repackaged (25th anniversary Rattle and Hum anyone?).  So let us all hope for the best!

Cheers,

J

[xy]

4 million Euros is a lot for regular Joe.

Not a lot for multi million worth rock bands.

[mdmomof7]

I think U2 have always been about the business. They were astute about business matters from the start and blessed to have someone who actually looked out for them at a time when many bands were not. Fraud is fraud and they are correct to call it out.