Bush has parted ways with Trauma Records and is in talks with Atlantic, sources tell Billboard Bulletin. Trauma, which issued Bush's first four albums, sued the band for breach of contract in 1999 for

Bush has parted ways with Trauma Records and is in talks with Atlantic, sources tell Billboard Bulletin. Trauma, which issued Bush's first four albums, sued the band for breach of contract in 1999 for $40 million. The suit was settled out of court, and Bush renegotiated its deal with Trauma before releasing its last album, "The Science Of Things," in 1999.

That set debuted at No. 11 on The Billboard 200 and sold 900,000 copies in the U.S., according to SoundScan, compared to 2.8 million units for 1996's "Razorblade Suitcase." Sources tell Billboard.com that Bush is currently in the studio working on more than a dozen new songs with producer Dave Sardy (Marilyn Manson, Dandy Warhols). A new album could appear as early as September.

The band has been off the road since last summer, following the completion of co-headlining dates with Moby on MTV's Campus Invasion tour. As previously reported, a planned tour stop in Bloomington, Ind., became mired in controversy after both Bush and Moby pulled out. The show's promoter subsequently filed suit against Bush for breach of contract.

Trauma did not return calls; Atlantic had no comment.

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