The two continue to battle in court
Founding Journey guitarist Neal Schon has posted another public statement about Jonathan Cain’s latest lawsuit against his alleged overspending while on tour. While Schon maintains Cain’s lawsuit is “slanderous” and “absolute rubbish,” he says they do agree on some points in the complaint.
“Anyone who follows Journey will know that Jon Cain and I don’t always see eye-to-eye on everything Or, sometimes, on pretty much anything,” Schon writes on social media. “Recently, Jon Cain made a number of claims and slanderous accusations about me and my wife – and I can’t stress enough how much it upset me and how wrong they are. I am determined to take the high road and push all this aside for the moment to focus on our fans, the tour and all who give so much to make things happen. That’s why I’m so glad that Jon now agrees with me that the current dynamic can’t continue and it’s also why I’m pleased that we’re going to bring 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 focus on – making music and performing for our fans. Thank you all for your support and see you out there soon.”
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.
Cain is asking the court to appoint a custodian to act as a third, independent director of Freedom 2020, Inc.
Schon, who’s very vocal on social media, claims the allegations are “very disruptive.”
“I find Cain’s slanderous allegations are very disruptive and damaging with intent to try to harm me, the band, crew, promoter and the tour. Truly disturbing to hear of Mr. Cain’s filing in the middle of Journey’s very successful Stadium Tour with our good friends Def Leppard. Journey has a great life and I thank the fans for that,” Schon states. “Jonathan Cain has created a very hostile work environment for not only myself, but other band members and crew-members. The allegations are false and I intend to prove it in court.”
The band canceled its upcoming European and Ireland run after the suit was filed.
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.
