05:17 PM EDT, 05/09/2024 (MT Newswires) -- (Updates with stock movement in the headline and first paragraph.)

Warner Music Group ( WMG ) shares were down nearly 9% in regular trading and 0.2% in after-hours activity Thursday after the US Supreme Court allowed a Miami-based music producer to collect more than a decade's worth of damages in a copyright case.

Music producer Sherman Nealy in a 2018 lawsuit claimed that a Warner Music ( WMG ) subsidiary infringed on his copyright by using elements of a song he owned, called "Jam the Box," in a song by the rapper Flo Rida called "In the Ayer."

The producer argued that Warner Music ( WMG ) obtained the rights to the song, while he was in prison and sought damages for copyright infringement dating back to 2008 -- when "In the Ayer" was released.

Initially, a lower court limited Nealy's ability to recover damages citing the US statute of limitations, but an appeals court overturned that decision, stating that there was no time limit for damages in this type of case.

The US Supreme Court ruled 6-3 to uphold the appeals court's decision, stating that the Copyright Act allows copyright owners to recover damages for any timely claim.

Warner Music ( WMG ) did not immediately respond to a request for comment by MT Newswires.

Price: 32.50, Change: -0.07, Percent Change: -0.21