The SEC is investigating the $200 million sale of Jay-Z's Rocawear clothing line to Iconix Brand Group in 2007 and whether Iconix violated federal securities laws. Exactly how long for the deposition, as well as its location, was left to be determined between the parties.
Manhattan U.S. District Judge Paul Gardephe ruled that Jay-Z, whose real name is Shawn Carter, must answer the SEC's questions for a full day and maybe more, the Associated Press reported.
This past March meanwhile, Iconix announced a $34 million write down of Rocawear that compounds a $169 million write down from 2016.
A representative on behalf of Jay said in a statement to ABC News, "We are aware that the SEC is seeking information on Iconix's financial reporting".More news: The Best 2018 AAA 400 Drive for Autism Lineup — Fantasy NASCAR Picks
Iconix, whose brands include Candie's and Joe Boxer, has been under SEC investigation since December 2015 over its accounting practices. That raised some issues with Carter's attorney Alex Spiro, who said that without certain guidelines, the SEC is "overreaching by trying to compel Mr. Carter to testify without reasonable limitation". He's also going to have to explain why he's only planning on testifying for one day, May 11, the only day he's agreed to give them. Carter submitted a declaration with the court, setting forth his rehearsal schedule for his upcoming tour, as well as his worldwide tour start date beginning on June 6 and ending October 4.
"The testimony has been delayed for five months, and I do not intend to tolerate any further delay", Gardephe said.
"Placing a hard time limit on testimony does nothing more than create an incentive to run out the clock", it said. According to Bloomberg, Jay-Z's first SEC subpoena came in November, 2017, which he promptly ignored.
Photo crews in front of 40 Foley Square waiting for Jay Z, who was a no-show.