According to The New York Times' exposé of Third Eye Blind's legal issues (up to 2002, at least), guitarist Kevin Cadogan was in the dark for three years about the legal setup behind the fact that the band was owned by a corporation, which was, in turn, owned by singer/songwriter Stephan Jenkins.
When the situation came to light in 1999, Cadogan took a stand and refused to sign a deal for making an EP. Jenkins renegotiated the deal, wrote Cadogan out of it, and bid him farewell on the heels of their performance at the Sundance Film Festival. A replacement guitarist was already lined up, and that's when Cadogan realized his hotel had been booked not under the band's name but his own.
Cadogan ended up suing over unpaid royalties, which he claimed had been withheld behind the umbrella of the corporation (via Billboard). Part of his lawsuit was based on a verbal agreement he'd had with Jenkins, ensuring an equal and fair split of all assets, according to his testimony. The lawsuit dragged on for two years, and in 2002 the case was settled for an undisclosed amount.
Afterward, Cadogan offered food for thought: "We're taught algebra, geometry, and calculus in school, but what we're not taught is basic law. ... Learn about law, and about statutes of limitations. Then get good lawyers."
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