BOWIE BOND CREATOR SUES PRUDENTIAL
OVER TRADE SECRETS

Bloomberg News
November 17, 1999

New York --- David Pullman, the creator of the so-called Bowie Bonds, filed a $2.7 billion lawsuit against Prudential Insurance Co. of America and other firms, claiming he was cut out of a venture to sell bonds backed by music royalties.

The suit, filed yesterday in New York State Supreme Court, claims Prudential broke a joint-venture agreement with Pullman Group LLC.  Pullman pioneered the music-backed bond business in 1997, arranging a $55 million bond sale for musician David Bowie.  Prudential bought all the Bowie bonds.

Prudential later partnered with Charles Koppelman's CAK/Universal Credit Corp. to sell music-backed bonds.  In addition to Prudential and CAK, the suit names entertainment manager Rascoff/Zysblat Organization and the Manhattan law firm Willkie Farr & Gallagher.  It alleges that the four defendants violated fiduciary duties and stole Pullman's trade secrets.

Prudential spokesman Timothy Diggs said the allegations were "baseless".  Officials at Willkie Farr, Pullman and Rascoff/Zysblat didn't return calls seeking comment.  Koppelman's office declined to comment.

Music-backed bonds are a tiny offshoot of the $786-billion asset-backed securities market, where credit card debt, auto loans and other receivables are packaged as securities and sold to investors.  Pullman has since completed bond sales for rhythm & blues artists Ashford & Simpson, the Motown songwriting team of Edward Holland, Lamont Dozier and Brian Holland, and the "Godfather of Soul," James Brown.