JAY-Z is taking his legal affairs to Bermuda. According to documents obtained by AllHipHop, the Roc Nation boss has filed paperwork to continue his $2.5 billion battle against Barcardi near its Bermudian headquarters. As explained in the docs, JAY-Z’s company SC Liquors and a Bacardi subsidiary contractually agreed to become partners and equal owners of D’Usse in 2012. The joint venture was responsible for producing, marketing and selling the premium Cognac brand.
In late 2021, SC exercised a “contractual put option,” compelling Bacardi’s United States-
based subsidiary to buy out SC’s 50 percent interest in the joint venture. But, rather than “negotiate in
good faith and exercise commercially reasonable efforts,” as mandated by the D’Usse Operating
Agreement, the Bermuda-based Bacardi caused its United States-based subsidiary to breach its contractual obligations to SC by seeking to force SC to sell its interests for far less than its $2.5 billion value.
“Based on those events, SC is now preparing to bring litigation against Bacardi in Bermuda,
where Bacardi is incorporated and headquartered (the ‘Bermuda Action’), for procuring a breach
of D’Usse’s Operating Agreement under Bermudian law,” the docs state. “In aid of that contemplated case, SC seeks this Court’s assistance to obtain relevant evidence from certain investors in Bacardi and/or its affiliates that are found within this Court’s jurisdiction. SC therefore respectfully requests that
this Court approve the application and permit service of the proposed subpoenas seeking
documents to aid its anticipated Bermuda Action.”
JAY-Z initially filed a lawsuit against Bacardi in October 2022, demanding complete financial transparency from Bacardi concerning D’Usse. He requested access to information about D’Usse’s production and sales, all books and records for the business and “the location of all warehouses storing D’Usse barrels, bottles and accessories.” The docs also wanted to see all the files pertaining to Bacardi’s physical inventory processes. AllHipHop has reached out to one of JAY-Z’s attorneys, Reed Brodsky, for comment.