California-based audio and video equipment manufacturer Monster, Inc. has sued Apple owned Beats Electronics, Beats co-founders Rapper Dr. Dre and Jimmy Iovine and HTC Corporation for allegedly scheming and deceiving Monster before Beats was sold to Apple for US$3 billion.

Dr. Dre and Monster had a successful partnership in 2008 during which they developed and manufactured Beats headphone products such as "Beats by Dr. Dre Studio".  The partnership, however, only lasted for four years and ended in 2012.

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Monster founder Noel Lee claims that when HTC ventured into Beats back in 2011, HTC acquired 51 percent of all major shares of the headphone maker for the hefty amount of US$309 million. Lee, however, described this as a "sham transaction."

The deal is said to have invoked a clause in its agreement that led to a broken partnership between Monster and Beats, though all rights remained in the latter's possession.

HTC's was allowed to associate and integrate Beats brand into their smartphones line-up and to have exclusive rights in manufacturing smartphones with Beats' audio systems.

Monster claims that Beats only used the change of ownership as an excuse to oust Monster from their partnership, causing Monster to lose millions in revenues. Beats bought back half of HTC's shares soon after the partnership ended. In 2013, Beats bought back and fully acquired all shares from HTC.

In 2014, Apple acquired Beats for US$3 billion, the biggest acquisition in Apple history, in the hopes of competing in the music streaming scene, Computer World reports.

There's no specific asking price for damages. Monster is expected to seek general and punitive damages against all named defendants.

TagsBeats, Beats Lawsuit, Monster Inc, Monster Inc vs Apple Beats, Apple Beats Lawsuit, Beats Fraud Lawsuit