Journey's Jonathan Cain and Neal Schon have reached a resolution in a legal dispute over the management of their joint business subsidiary, Freedom 2020.
As previously reported, Cain sued Schon for mismanagement of their shared business and excessive spending at the band's expense, all while Cain and Schon are actively sharing the stage on Journey's North American summer tour with Def Leppard.
Cain's lawsuit, filed publicly on July 30, alleged that Schon had maxed out the $1 million limit on an American Express credit card and exceeded the $1,500 per night hotel stay he was allowed, as well as chartering private jets and hiring a friend as a security guard. The keyboardist also accused the guitarist of preventing the band from paying its debts.
As a solution, Cain requested that a third party serve as a deciding vote in future business disputes, and Cain’s legal team filed the suit after “repeated efforts over several weeks to select a third independent director failed amicably,” according to his statement. On Wednesday (Aug. 28), Schon apparently agreed and “yielded to Mr. Cain’s demand and stipulated that the Court of Chancery appoint a third director of the Company,” according to the statement from Cain’s attorneys.
The statement continued [via Classic Rock]:
“On August 28, 2024, the Delaware Court of Chancery issued an order appointing former Vice Chancellor Joseph Slights as custodian.
The order is consistent with Mr. Cain's request for relief in the lawsuit. Mr. Schon is prohibited from acting unilaterally on behalf of the Company and any future impasse between Mr. Cain and Mr. Schon will be resolved by a vote of the Custodian.
Mr. Cain is delighted with the outcome and looks forward to putting this matter behind us so Journey can continue with the band’s 50th anniversary tour.”
Court documents He goes on to say that Schon does not oppose the appointment of the custodian, who will be able to exercise the executive power of a director of the company even if he is not actually a director of the company.
Schon himself hinted at a resolution last week in a Facebook postwriting, “I’m so glad that Jon now agrees with me that the current dynamic cannot continue and that’s also why I’m glad we’re bringing in someone impartial to help us resolve our disputes, bring clarity to what we’re doing and allow us, as a band, to get back to what we should all be focusing on: making music and performing for our fans.”
It's expected to be a major step forward in repairing the rocky professional relationship between the two band members. Next up, Journey's ongoing tour with Def Leppard and Steve Miller will stop at San Diego's Petco Park on Friday (August 30), with two more U.S. dates to follow in Seattle (September 4) and Denver (September 8). Pick up tickets here.
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