A federal court has ordered Proper Group (formerly Utopia Music) to pay $1.86 million related to their 2021 acquisition of Lyric Financial. The ruling comes from the U.S. District Court for the Southern District of New York.

The original acquisition deal was structured as an $8 million purchase:

• $5 million upfront payment
• Two $1.5 million installment payments

When Proper Group failed to make the second $1.5 million installment payment, Lyric Financial's former owners took legal action. The case was heard by the London Court of International Arbitration, which ruled in favor of the sellers despite Proper Group's claims that Lyric Financial hadn't fulfilled their contractual obligations.

The final judgment totals $1,862,995.54, plus interest from July 3rd until full payment is made. This ruling comes as part of several challenges faced by Proper Group following their aggressive acquisition strategy in 2021-2022, which led to:

• Bankruptcy proceedings
• Operational difficulties
• Widespread layoffs
• Executive restructuring
• Sale of acquired companies (including Sentric to Believe for $50+ million)
• Multiple legal disputes

The court has "granted in its entirety" the petition to recognize the arbitration award, legally obligating Proper Group to pay the settlement amount.

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