A federal judge in Manhattan ordered rapper Jay-Z to explain his failure to cooperate with a Securities and Exchange Commission investigation touching on a $200 million deal with Iconix Brand Group.
Jay-Z, whose real name is Shawn Carter, must justify his position or face a court order compelling him to testify to SEC investigators as soon as May 11, U.S. District Judge Paul Gardephe wrote in court papers Thursday.
The SEC asked the judge to compel the rapper’s testimony after he brushed off two subpoenas in the Iconix matter. The company purchased his Rocawear apparel brand in 2007, and the two maintained a partnership afterward.
The SEC issued subpoenas in both November 2017 and February 2018, but Jay-Z did not testify after either and has not agreed to a future date, the agency said. It’s looking into Iconix’s $169 million writedown of Rocawear in 2016 and a subsequent $34 million writedown in March.
Iconix, which posted a $541 million loss in 2017, has tumbled 54 percent in New York trading this year to 59 cents.
“We are aware that the SEC is seeking information on Iconix’ s financial reporting,” a spokeswoman for the performer said. “Mr. Carter had no role in that reporting or Iconix’ s other actions as a public company. Mr. Carter is a private citizen who should not be involved in this matter.”
