The alleged inducement to repudiate the contract includes EMI providing $55,000 to the band to sue Chicago-based Victory in 2006, and assistance in finding a litigator.
Victory seeks $10 mil. in damages, and another $25 mil. in punitive damages for "willful, wanton, and deliberate conduct." $35 million!
...all in all, not a good day for EMI. Plus, the allegations likely leave many of the laid-off EMI employees wondering if that $55,000 could have gone towards their salary and/or figuring out a way to not have to fire people.
[** Update 1/15/08, 10:15AM: Victory Records Inc.; Another Victory Inc. v. Virgin Records America Inc.; EMI Music North America; filed, 1/14/2008; case no. CV-0314]