Jay-Z will be in court next week to tell a judge why he should get a pass on testifying before the U.S. Securities and Exchange Commission about a purchasing deal involving his Rocawear clothing line.
The SEC filed a subpoena to require Jay, whose real name is Shawn Carter, to testify in a probe involving Rocawear. Officials are investigating Iconix, a company that licenses apparel brands to national retailers, for potential securities laws violations related to financial reporting, an SEC release said. Iconix brought Rocawear and paid Jay more than $200 million in 2007.
Basically, Jay got 99 problems, and testifying would apparently be another one. Here’s what else we know about the probe:
Iconix and Jay are involved in business partnerships
Carter and Iconix “maintained publicly-disclosed partnerships related to the Rocawear brand,” the SEC release said. The commission seeks to question Jay about those joint ventures. One of the specific dealings involves Iconix having publicly announced a $169 million write-down of Rocawear in March 2016. The company also announced a further write-down of $34 million in March of this year.
This is the second subpoena issued by the SEC
The agency originally issued an order for Jay’s testimony last November. They sought a second subpoena in February after the rapper-mogul retained a new attorney in the matter.
Issuing a subpoena doesn’t mean the agency had accused Jay of any wrongdoing
“A subpoena enforcement action is appropriate where the information sought from the witness is relevant to the investigation,” the release read. “The application does not reflect a determination by the SEC or its staff that Carter has violated provisions of the federal securities laws at issue in the investigation.”