Last September, Scooter Braun's Ithaca Management Holdings sued Troy Carter, claiming the former Spotify global head of creator services failed to pay back a $10 million loan. The two parties have now reached a settlement.
According to court documents obtained by Billboard, both sides signed off on a joint notice of settlement on March 19. The terms of the settlement are unclear.
The suit was filed against Carter, his wife and his company, Atom Factory, for fraud and breach of contract, alleging that Carter was in default of his obligation to pay back a 2016 loan in excess of $10 million. At the time, Carter issued Billboard a statement denying the allegations, claiming he "never borrowed a dime from" Braun.
Braun, who manages Ariana Grande and Justin Beiber, among others, was not mentioned as a plaintiff in the suit. But it was filed by his investment fund, Ithaca, which sources tell Billboard acts as a holding company for his Scooter Braun Projects.
In October, Ithaca returned with a second court filing seeking an injunction and to expedite the case, also revealing new details about the loan. In those filings, the company claimed that Ithaca followed up with Troy and his wife, Rebecca Carter, about the status of the payment, and were assured that payment would be received by the end of August. (Carter denied these statements.) Ithaca was requesting full repayment in cash of all obligations, totaling slightly more than $14.5 million.
Representatives for both sides did not immediately respond to requests for comment.