The Recording Academy (NARAS) filed an $86,000 lawsuit against FX Group, LLC, their longtime Grammy Awards program printer, over an unpaid bill from a failed printing agreement.

The lawsuit was quickly dismissed by a federal judge in the Central District of California after just four days, citing lack of subject matter jurisdiction. The judge noted that while the complaint inadequately alleged jurisdiction, NARAS could amend and refile the case.

The dismissal highlights a potentially costly legal battle, as NARAS's legal fees through Proskauer Rose LLP likely already exceed the disputed amount. Additionally, FX Group faces potential reputational damage from the lawsuit and subsequent media coverage, which could lead to a countersuit if they have valid reasons for withholding payment.

The case demonstrates how relatively small disputes can escalate into costly legal battles, potentially far exceeding the original amount in question. NARAS has the option to file an amended complaint or pursue the case in a different jurisdiction, though the cost-benefit analysis of continued litigation remains questionable.

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