Nearly four years after the beginning of what would ultimately become a failed merger between the CMJ Music Festival and Metropolitan Entertainment, the organizers of the annual New York City festival are facing a lawsuit.

The New York Times originally reported the story, in which CMJ announced plans to merge with Metropolitan Entertainment, boosting CMJ's value to $2.4 million.

The deal, however, was never completed, despite Metropolitan allegedly loaning hundreds of thousands of dollars to help the then struggling festival. Concert promoter John Scher, who worked with Metropolitan, originally filed suit last May when the two companies ultimately split apart.

Specifically, the suit claims that Metropolitan started to loan CMJ $600,000 beginning in 2009, which the festival has failed to repay. Accrued interest over time, plus extra incentives, could ultimately cost CMJ around $1 million.

Scher also condemns the company for illegally transferring those assets to another company in an attempt to "shield" itself from Metropolitan Entertainment.

“We were going to take over a company that was habitually in the red, and make them a considerable payment, and they just decided to ignore that,” Scher said yesterday. He also noted that the company has picked up another outside investment.

With no negotiations between the two parties, the surprisingly small CMJ could find itself in court soon.