Legal troubles
Knight was also investigated in 2005 for paying a man to punch Dr. Dre as he accepted a lifetime achievement award at the 2004 Vibe Awards; though he denies the claim, the assailant apparently told Santa Monica police that Knight offered him $5,000 for the job.[28] A lawsuit was brought against him by Lydia Harris, resulting in a court order to pay her $107 million in profits owed after she'd been forced from the label. The judgment resulted in Knight declaring bankruptcy in 2006, after turning down Warner Music Group's offer to buy at $25 million, and made to auction off all assets of the label.[29]
'06 also saw Dr. Dre bring a lawsuit against the label demanding rights to The Chronic, by reason of unpaid royalties. By 2008, it was reported separately that Susan Berg, president of Global Music Group, bid on the label at auction for $24 million, and that Warner had topped her bid by reiterating its $25 million dollar offer, but neither sale went through;[30] questions regarding Knight's financial status surfaced when he sued Kanye West over a shooting/robbery at the rapper's birthday party.[31]
On January 15, 2009, Death Row Records was successfully auctioned to entertainment development company WIDEawake Entertainment Group, Inc. for $18 million. On January 25, 2009, an auction was held for everything found in the Death Row Records office after the company filed for bankruptcy. Of note was the Death Row Records electric chair which went for $2500.[32]