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Settlement for Big Label in Payola Case

Settlement for Big Label in Payola Case

The biggest record label, Universal Music Group Recordings Inc., has agreed to pay $12 million to settle a payola case, AP reports. The announcement came from N.Y. Attorney General Eliot Spitzer, who had claimed the company provided vacations, electronics and other bribes to increase radio play for their artists.
The company agreed to adopt reforms; it didn’t admit guilt but acknowledged “various employees and independent promoters acting on behalf of the company” engaged in the illegal practice, AP quoted Spitzer as saying.
Sony and Warner labels previously agreed to multimillion-dollar settlements. Spitzer has also sued Entercom, which has denied “cash for airplay” allegations against it.