According to Pearlman's lawyer, both parties have come to an agreement in principle concerning who should be elected to chair the company, which governs everything from the group's personal appearances, to merchandising and royalties.

The five-piece act originally filed suit in May over whether their manager, who has the right to cast each individual member's votes, is able to elect himself to this position.

A second legal action brought about by the Backstreet Boys to have an annual meeting held regarding company business is said to be part of this possible settlement. Both sides are expected to agree to new terms within the next few months. Pearlman and the individual members of the group are the only stockholders of Backstreet Boys, Inc.

The case, which was scheduled to be tried last Thursday and Friday in Delaware Chancery Court, has been set aside until either a settlement is reached or upon further notice from council.

- MTV News Gallery

July 21, 1998