Lawsuit
In November 1983, following the commercial failure of Everybody's Rockin', Geffen sued Young for $3.3 million, on the grounds that this record and its predecessor were "not commercial", and "musically uncharacteristic of previous recordings." Young filed a $21 million countersuit, alleging breach of contract since Young had been promised no creative interference from the label.
The suit backfired against Geffen, with label owner David Geffen personally apologizing to Young for the suit and for interference with his work. The lawsuit repelled prospective signees R.E.M., who were preparing to work with Geffen but upon hearing of the Young lawsuit signed with Warner Bros. instead.
The year before the lawsuit, just after Young had signed to Geffen, his longtime manager Elliot Roberts was asked why Young had changed labels, and said, "I did have a much larger offer from R.C.A. about £4 Million more. David Geffen and I used to be partners and David has worked with Neil for a very long time. He totally relates to Neil as an artist and has no preconceived notions about Neil. He knows that he's capable of doing anything at any point, at any time... he will have the freedom to practice his art as he sees it, as opposed to when you make a deal where someone is paying you £1 - £2 million an album you feel obligated to give them commercial music that they can sell large numbers of. Neil's not concerned with selling large numbers of his records, he's concerned with making records that he's pleased with. Unfortunately they are not always commercial from the record company's point of view. David Geffen relates to that. He knows Neil may do a country album and then he may do an electric album because there's no rhyme or reason with Neil. It's what he's moved by."
Read more about this topic: Everybody's Rockin'