Label seeking more than $1.5 million.

New York-based MRI Associated Labels has filed an eight-count suit against its former distribution partner Ryko Distribution, seeking more than $1.5 million in damages and charging that Ryko breached the agreement they reached to dissolve their prior contractual relationship.

In the suit, which was filed April 26 in New York Supreme Court, MRI alleges that Ryko failed to comply with a number of the dissolution agreement’s payment terms and continued to distribute MRI’s product “after the expiration of its rights to do so.” This, says MRI, caused what was only described as a “significant problem” with its current distributor, RED Distribution.

MRI, which owns Megaforce Records and acts as a boutique distributor for such labels as Fat Possum and the Sting Cheese Incident’s Sci-Fidelity Records, left Ryko Distribution in April of last year. The company had been with Ryko since July of 2001.

Ryko Distribution president Jim Cuomo says it is the company’s policy not to comment on pending litigation.