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 case 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 potentially amend and refile the case.

The legal costs for NARAS, represented by Proskauer Rose LLP, likely exceeded the $86,000 they were attempting to recover. Meanwhile, FX Group faces potential reputational damage from the lawsuit and resulting publicity, which could lead to a countersuit or defense if they have valid reasons for withholding payment.

This case highlights how legal fees can quickly surpass the original disputed amount, potentially making both parties financial losers in the process.

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