The label—co-founded by Jay-Z, Kareem “Biggs” Burke, and Dash—sued Dash earlier this month, alleging that he was attempting to sell virtual ownership of Reasonable Doubt copyrights in the auction.
Now, per The Hollywood Reporter, U.S. District Court Judge John Cronan has agreed that the NFT sale shouldn’t move forward. For now, at least. The label had been worried about Dash continuing to pursue the sale after the SuperFarm platform received a warning letter, resulting in the label’s decision to ask the court for a temporary restraining order.
Key here is the fact that this is temporary, meaning Dash could continue to push back in court. Moving forward, the legal debate will likely center on whether to make the temporary restraining order a preliminary injunction.
A source told Complex on Tuesday that Cronan said, “Mr. Carter’s arguments were deemed credible and correct.” The source also confirmed the temporary restraining order against Dash had been granted. Dash, per the source, can’t sell his share of Roc-A-Fella Records Inc. or his share of Reasonable Doubt to anyone. As the source explained, Dash has a minority share and must secure majority approval for such decisions.
In recent days, Dash responded to the Roc-A-Fella suit, arguing—according to TMZ—that he was actually trying to sell his entire stake in the label. Dash also alleged that Jay-Z tried to buy his one-third share at an “unacceptable” price earlier this year, a move which he said inspired him to search for his own buyer.
Bidding for the Reasonable Doubt NFT was initially set to begin on June 23. In the Roc-A-Fella suit, SuperFarm was quoted as having touted “the auction of Damon‘s ownership of the copyright to Jay-Z’s first album Reasonable Doubt” when first announcing the NFT auction.