Former Gogol Bordello guitarist Oren Kaplan is suing the band's frontman, Eugene Hutz, alleging that he "brazenly absconded with approximately half a million dollars" of the band's money.
Kaplan, who played with the band between 2000 and 2012, filed the lawsuit at a New York court on behalf of himself and Gypsy Punks LLC, Gogol Bordello's business arm. He claims that irregularities were discovered when his accountant audited the band in 2012.
According to Courthouse News Service, Kaplan is claiming $950,000 in damages for "breach of contract, breach of fiduciary duty and unjust enrichment", including issues with a lucrative Coca-Cola deal:
"Hutz brazenly absconded with approximately half a million dollars from the bank accounts of the Gogol Bordello entities and deposited those funds into the accounts of new companies which are wholly owned by Hutz. (These transfers have been disingenuously characterized by Hutz's representatives as 'loans.') Moreover, Hutz has paid himself a 'salary' to which Hutz is entitled under the group's contractual arrangements. Further, Hutz has transferred all of the business operations of the Gogol Bordello Entities into his new, wholly owned companies without providing the Gogol Bordello entities with any compensation for having done so. Plaintiff had no prior notice of, and has never approved any of these illicit self dealing acts.
"Moreover, Hutz has effectively and unlawfully 'locked' plaintiff out of the group and the Gogol Bordello entities and otherwise deprived plaintiff of the benefits to which he is entitled under the group's agreements. For example, Hutz secretly entered into a promotional deal for the group with Coca-Cola without telling plaintiff about it or allowing plaintiff to participate in the promotion. Hutz accomplished this ruse by feigning concern for plaintiff (whose mother had just passed away) and encouraging plaintiff to take an extended leave of absence from the group, during the very time when the group would be recording its song for the Coca-Cola commercial."
Kaplan did not play on the band's latest release, 'Pura Vida Conspiracy', and is not currently touring with them. Hutz is yet to comment on the allegations.
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