311 FILES SUIT AGAINST CAPRICORN

Amidst reports (predominantly by hitsdailydouble.com) that their label is negotiating to find a new home, some Capricorn acts are now voicing concern that execs may want to spend more time focusing on their artists then on record company business.

Popular alternative band 311, currently Capricorn's biggest seller, claims it would be even more popular if it weren't for the "ineptitude" of its label, according to a lawsuit band members filed in Los Angeles Superior Court on Monday.

In the suit, 311 members said when they first signed with Capricorn in 1992, the label promised that the band would benefit from Capricorn's joint venture agreement with Warner Bros. But Capricorn's relationship with Warner ended after the release of 311's first album, "Music," in 1993.

Capricorn then attempted to market and promote 311 without the support of a major label, but was unsuccessful and eventually coupled with Mercury Records. With Mercury's help, 311's self-titled album sold three million copies. After Mercury was acquired by Seagram's Universal Music Group as part of its PolyGram buyout, however, Capricorn terminated its relationship with Universal.

Inside.comreports that for two years, Capricorn promised 311 it would enter another venture with a major record label, but "these promises remain unfulfilled."

As a result, the sales of 311's 1999 album, "Soundsystem," hasn't measured up to its earlier releases, the lawsuit states. 311 wants out of its agreement with Capricorn, but Capricorn, despite firing or losing its staff and other successful bands it represented, refuses to let the band go, the suit claims.

"Put simply, defendant continues to spiral toward failure, and plaintiffs cannot withstand the damage to their careers and livelihood by being pulled down with them," says the complaint. The suit, filed by Howard King of King, Purtich, Holmes, Paterno & Berliner, seeks compensatory damages and rescission of the agreement.

“311 should call 911,” an insider said. “The band and the label are both in need of emergency service.”