Why is Jay-Z testifying in court today?

Rapper to appear as part of investigation into accounts of Iconix, a company that bought his Rocawear clothing brand in 2007

Jay-Z’s lawyers had said that he could not appear in court because he was preparing for his On The Run II tour (Getty)

Rapper and business mogul Jay-Z is due to testify in a New York court on Tuesday as part of an investigation into a company that bought his Rocawear clothing brand.

Why is Jay-Z in court on Tuesday?

A federal judge has ruled that the US Securities and Exchange Commission is allowed to compel Jay-Z to testify as part of its probe into the accounts of Iconix Brand Group, which bought the assets of Rocawear in 2007. He has already failed to appear in court twice for the case despite subpoenas compelling him to do so.

What does Jay-Z have to say about this?

Jay-Z’s lawyers had said that he could not appear in court because he was preparing for his On The Run II tour. Last week, they said that the SEC was engaging in a “celebrity hunt” by trying to make Jay-Z appear in court.

Jay-Z thought the decision to try to compel him to give testimony was “driven more by governmental fascination with celebrity and headlines than by any proper investigative purpose,” the lawyers said.

What is the investigation about?

The SEC is looking into potential violations of securities laws by Iconix. The hip hop star, whose real name is Shawn Carter, sold the rights to the Rocawear brand for $204m in 2007, retaining a stake in the company and remaining as chief creative officer.

The regulator says it needs face-to-face testimony from Jay-Z over his partnership with the Rocawear brand.

Iconix wrote down the value of Rocawear in its accounts by $169m in 2016 and a further $34m this year. The New York-based company has struggled financially for several years, with its share price plummeting from nearly $40 in 2015 to less than $1 today.

Is Jay-Z being investigated?

No. The SEC has said that the application to make Jay-Z appear in court “does not reflect a determination by the SEC or its staff that Carter has violated provisions of the federal securities laws at issue in the investigation”.