Owners Jonathan Cain and Neal Schon are back in court over excessive spending
Journey has canceled UK and Ireland dates on its 50th Anniversary Tour. The band was slated to perform its first shows on the shores in over a decade this fall. Ticketholders received an email confirming that the 11-date trek in October and November has been canceled.
“Due to circumstances beyond the band’s control, Journey’s UK and Ireland tour is unfortunately canceled,” the statement reads. “Refunds will be made from your point of purchase.”
It’s unclear as to the circumstances of the cancelation, but keyboardist Jonathan Cain and founding guitarist Neal Schon are back in court over expenditures with Cain accusing Schon’s spending posing a “severe threat of harm” to the band and its history. On July 30th, Cain filed court documents against Schon for “exorbitant and wasteful spending” related to the band’s and crew members’ hotels and airfare while on tour. The lawsuit claims the company, Freedom 2020 Inc., of which both Cain and Schon are 50% owners, has imposed a “reasonable limit of $1,500 per night for hotel accommodations.” The suit claims that Cain and Schon both agreed to the price point, but Schon “has seemingly reneged on such a limitation, and routinely exceeds the limit.”
Cain claims that Schon has spent “up to $10,000 per night for hotel rooms for him and his wife” which were never approved by the organization. Cain’s suit also alleges that Schon and his wife “unilaterally authorize the band’s crew members to stay in hotel rooms in their home cities and when their home is only miles away from the venue, and to fly in business class” and incurred $80,000 of “unanticipated expenses” most recently.
The lawsuit claims that Cain opposes big expenditures, but Schon and his wife “incur significant expenses (in the hundreds of thousands of dollars) on behalf of the company and for their (and various crew members’) use of private jets.” Cain claims that Schon continues to disregard his concerns and “unilaterally expend hundreds of thousands of dollars on behalf of the company so that he, his wife and some of the band’s crew members can travel by private jet during the Freedom Tour.”
Cain also claims that Schon’s spending is not “timely provided” to the company’s business manager and accounting firm. Instead, the invoices are submitted “only days before payment is due,” with Schon demanding that such invoices be “immediately paid.”
The pair are also at war over the company’s American Express card, which has a $1 million limit. Court documents claim the card is in Cain’s name, and not the company’s, but both he and Schon are authorized users with their own cards. The filing claims the company pays its vendors with the card, but Schon’s charges “far exceed” those of Cain’s. The suit claims that the AMEX is solely for company expenses, but Schon and his wife “have used the AMEX for personal expenses” not approved by Cain.
To prevent additional unauthorized expenditures and to effectively manage the company’s expenses, a $30,000 limit was placed on both AMEX cards. However, the suit accuses Schon and his wife of obtaining access to the AMEX card by “working through the company’s travel agent, and are once again charging exorbitant unauthorized charges to the AMEX.”
Cain also states the card is often fully maxed, but Schon refuses to authorize the company to pay the balance in full. The suit claims both parties must authorize payments, but Schon refused to cooperate for a scheduled payment of $423,000 in July to continue operating business as usual. The payment was made without Schon’s approval, causing Schon’s attorneys to “threaten the company’s accountant and incorrectly declare himself as the sole decisionmaker of the company.”
The filing also reveals the duo hired a business manager in May 2024 to oversee business dealings that require “any and all of the company’s approvals, actions and decisions under the agreement must be approved by both shareholders of the company.” The pair are also in deadlock over the hiring and firing of band and crew members with one firing and the other rehiring a few days later.
Cain is asking the court to appoint a custodian to act as a third, independent director of Freedom 2020, Inc.
Schon and Cain have been embattled in a suit over an American Express credit card for more than a year. The band is currently co-headlining The Stadium Tour with Def Leppard and Steve Miller Band with special guest Cheap Trick.
