NYC judge Charles Ramos has said the lawsuit filed by developer Gate Five against Beyonce Knowles can go to trial.
The lawsuit stems from a 2010 $20 million deal between the two parties for Starpower: Beyonce, a deal which the entertainer pulled out of.
According to the New York Post, Gate Five was forced let go of 70 employees due to the cancellation and as a result is suing for the $6.7 million it invested in the project as well as $100 million in lost profits.
Knowles’ lawyer states financing wasn’t in place as promised by Gate Five, and because of this she was well within her rights to pull out of the project.
The judge presiding over the case said Knowles should have provided notice to the company because “you continue to negotiate right up until the time you pull the plug.”
“That is not going to work with me,” he said.
Gate Five claims Knowles was aware that on December 6, 2010 it was scheduled to sign a contract with its financier, and even with this knowledge, she pulled out of the deal three days beforehand.