Artists, Aftra Settle Benefits Suit

A new $8.5 million settlement has been successfully negotiated in a 9-year-old lawsuit involving soul legend Sam Moore and 15 veteran R&B recording artists. The artists sued the trustees of the funds unit of the American Federation of Television and Radio Artists (AFTRA) for breach of fiduciary duty in 1993 for failing to keep accurate records and monitoring record company contributions.

Under the new Oct. 17 agreement, the named plaintiffs will receive $25,000 as opposed to $150,000 apiece under the terms of a previous agreement rejected by some of the recording artists. But the plaintiffs now will be able to pursue further challenges that they had been underpaid. Other monies will go to lawyers in the case.

By law, recording artists under their contracts are entitled to health and pension benefits, and the Funds administer the contributions from record companies. Tens of thousands of unnamed recording artists in the class-action part of the suit—who would only have received several hundred dollars—will also be able to bring grievances to an appointed arbitrator. A third-party consultant will also make recommendations to AFTRA Funds for reforms deemed necessary.

AFTRA leadership intervened against its own Funds in June, and U.S. District Court Judge Clarence Cooper ruled that AFTRA and the Recording Artists' Coalition could file outside party briefs opposing the first settlement.

A pending court case against the labels charging them with years of nonpayment and underpayments continues.