Woodstock 50 festival founder says Japanese investors siphoned $17 million

Founder of Woodstock 50 festival, Michael Lang, has claimed that former investors, the Japanese firm Dentsu Aegis, have siphoned approximately $17 million from the festival's bank account.

In a letter issued on Monday, Lang asked Dentsu Aegis to "honor the law and your obligations, stop interfering with our efforts to put on this wonderful event and return the $17 million you improperly took."

According to Variety, the letter alleges that Dentsu' investment branch Amplifi "illegally swept" the money from the festival bank account on April 29, the same day the company announced they had unilaterally cancelled the festival.

"We also have evidence that Dentsu representatives have gone so far as to say that should the talent back out of Woodstock, they would be seen favourably by Dentsu and that this could result in their performing the 2020 Summer Olympics in Tokyo, where Dentsu is a major organizer. In these actions too, Dentsu has acted not only without honour, but outside of the law," Lang wrote.

Denstu-Aegis' representative debunked Lang's claim saying the company recovered the funds which they had put in as a financial partner.

"As financial partner, we had the customary rights one would expect to protect a large investment. After we exercised our contractual right to take over, and subsequently, cancel the festival, we simply recovered the funds in the festival bank account, funds which we originally put in as financial partner.

"Further, tickets cannot go on sale for an event prior to obtaining a mass gathering permit, which has still not been granted. Beyond that we stand by our original statement that we made last week," the statement read.

Woodstock 50, a planned three-day concert to mark the 50th anniversary of the iconic 1969 Woodstock festival, has been facing uncertain future since April 29, when Dentsu said that they have decided to not go ahead with the event.

The organisers, however, have insisted that the festival would take place as per schedule from August 16 to 18 in Watkins Glen in upstate New York state.

Big names from the music industry such as rapper Jay-Z, Miley Cyrus and rockers the Killers were part scheduled to perform at the festival.