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Did Lady Gaga pocket funds raised for a Japan charity?

By Kim Palacios

hollywoodnews.com: Lady Gaga is being sued for some $5M amid claims that she pocketed partial proceeds from a campaign designed to aid Japan earthquake victims. According to Ari Kresch, an attorney with 1-800-Law-Firm, the legal group filing the suit, “I’m suing Lady Gaga simply to hold her accountable for giving the money that she was raising for charity to the cause that she was trying to raise it for.”

So, what’s the problem? According to the plaintiffs, the Lady Gaga camp was overcharging for extras like shipping and handling in conjunction with the $5 “We Pray for Japan” bracelets that donors expected to go to charity. The allegation is that in place of all proceeds less logistical costs going to charity, as was implied, that the Gaga camp donated some percentage of the money, used some percentage for logistical cost, and kept some percentage for itself.

Another 1-800-Law-Firm rep, Alyson Oliver, added, “When we tried to communicate with the defendants in this lawsuit, all we got was, ‘well, some of the money is being retained, but we don’t really know how much.’” Per Gossip Cop, the suit says Lady Gaga “violated a number of federal racketeering laws as well as consumer protection laws from the alleged scam.”

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About Kim Palacios

Kim Palacios is a San Francisco Bay Area transplant whose epicurean tendencies are matched only by her wanderlust. While not covering food, wine, and luxury travel for her column on Examiner.com, she guest writes for Travel Writers Exchange and a number of other varied-topic blogs. She is quadrilingual and holds an M.B.A. in Finance (neither of which she uses much these days). While not mourning the death of free markets and grumbling about the tax treatment of Californians, she enjoys film, and all things Twilight.

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One Comment

  • June 26, 2011 | Permalink |

    Gaga would never intentionally do this! She doesn’t care about money and even if she did, she’s rich enough in her own right!

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