Reznor Ripped in Court

Nail Inch Nails rocker spends 40th birthday in court defending his assertion ex-manager bilked millions

By Charlie Amter May 18, 2005 11:45 PMTags

Trent Reznor was "down in it" this week as he faced fierce cross-examination in a New York courtroom.

The Nine Inch Nails ringleader, who has admitted to not caring much about the business end of his alt-rock band, is suing his ex-manager for breach of contract and breach of fiduciary duty, alleging he was duped out of millions by onetime friend and manager John Malm.

Reznor spent the better part of his 40th birthday Tuesday defending his assertion that Malm consciously and summarily ripped off the rocker off.

"The last place I wanted to end up was sitting here right now," Reznor said on the witness stand. "This is like a divorce."

Reznor laid out his case Monday in court, saying he didn't realize he was in financial trouble until he requested a financial statement from Malm in 2003, which showed the multiplatinum-selling artist had less than $3.5 million in total assets and $400,00 in cash. (The Grammy winner has sold north of 20 million records worldwide since he debuted with 1989's Pretty Hate Machine.)

But Tuesday, Malm's lawyers hammered Reznor on the witness stand, forcing him to admit under cross that he knew of and signed off on several NIN-affiliated companies--effectively contradicting Reznor's contention that he was totally in the dark regarding the business end of the Nine Inch Nails empire.

Monday, the rocker told jurors, "John was the business guy, and I was the guy working for nothing in the studio."

Despite the grueling cross-examination, U.S. District Court Judge Jed Rakoff cut Reznor a bit of slack, refusing to admit into evidence an expletive-laden Aug. 16, 2004 email the "Down In It" singer sent to Malm. Rakoff said the late-night "rant" might prejudice the jury against Reznor.

Reznor's suit, filed in May 2004, claims Malm engaged in a host of deceptive practices, including diverting funds without Reznor's knowledge, using band money for personal travel and entertainment purposes and tricking Reznor into signing a contract that allowed Malm to collect 20 percent of the singer's gross earnings, rather than the less lucrative net earnings.

Malm in turn filed a counterclaim contending Reznor actually owes him $2 million in commissions.

Reznor first post-Malm studio release, and first new music in six years, With Teeth, debuted atop Billboard's Hot 200 last week and is number five this week. "The Hand That Feeds," the first single off Teeth, is the number two song on Billboard's Modern Rock Tracks chart for the second week in a row.