American rapper Snoop Dogg sued Pabst Brewing Co. in 2015 claimed that Pabst breached the agreements that were reached in an endorsement deal. Snoop Dogg is one step closer to trial with Pabst Brewing Co. after a California judge Malcolm H. Mackey on Monday declined to drop the rapper’s lawsuit against the beverage company.
In 2011, Snoop signed on to be the face of Blast Colt 45, a fruity flavored spinoff of the classic malt beverage. The contract contained a phantom equity clause that entitled him to a portion of the profits if the brand was sold before January 2016 in addition to standard fees and royalties.
In 2014 the brewer’s grandparent company Pabst Corporate Holdings sold all of its stock in Pabst Holdings Inc., which is the sole owner of Pabst Brewing, the originators of the Blast Colt 45 brand. The Dispute arises in whether the sale triggered the phantom equity clause in Snoop’s contract.
Whereas Pabst argues that the sale merely transferred control of the brand, not ownership, and that isn’t covered by Snoop’s deal.