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In early 2000, the label and Biafra were named in a lawsuit brought by his former Dead Kennedys bandmates.

The suit claimed that Biafra had failed to pay the band royalties on Dead Kennedys albums.

The end result of the case saw the rights to the albums turned over to the other band members, who licensed them to Manifesto Records in the United States ( and to other labels in the rest of the world ).

The taking away of the Dead Kennedys album meant that the label struggled to get back on its feet, since the biggest sales it had were Dead Kennedys albums.