New Order sued for £2m by ex-bassist Peter Hook

Hook accused Bernard Sumner and Stephen and Gillian Morris of 'pillaging' the influential group’s assets

Peter Hook, pictured in 2010, claims he has lost more than £2.3m after his former New Order bandmates set up a new company in 2011 (Getty)

Peter Hook, the former New Order bassist, is suing his ex-bandmates for millions of pounds in a bitter row over royalties.

Hook claims he has lost out on more than £2.3m in earnings since the three other band members set up a company without him to handle the band's income in 2011.

Hook, who last played with New Order in 2007, accused Bernard Sumner and Stephen and Gillian Morris of “pillaging” the influential group’s assets.

The trio, who this year released an acclaimed new album Music Complete, recorded without Hook, say they have treated their former colleague fairly and argue that his stake of the royalties is reasonable.

At a High Court hearing, Judge David Cooke ruled that Hook was not acting out of “spite” and cleared the way for him to take his complaints to a full trial.

The current incarnation of New Order, including original members Gillian Gilbert, Bernard Sumner,centre, and Stephen Morris, second right (Nick Wilson)

New Order was formed by Hook, 59, and the other surviving members of Joy Division in 1980 following the suicide of singer Ian Curtis. Hook’s distinctive chiming bass sound was heard in hits including Blue Monday, True Faith and Regret.

When their record label Factory collapsed in 1992, the foursome formed a company named Vitalturn to hold all of New Order's rights.

Hook parted company with the band acrimoniously in 2007, but the other members carried on without him and continued to use the New Order name.

Hook owns 25% of Vitalturn but was absent when the other three - who own 75% - set up a new company, New Order Ltd, in 2011.

That company has generated an income of £7.8m in four years, but Hook receives a tiny fraction of that, the court heard.

Hook’s barrister Mark Wyeth QC said the “clandestine, premeditated and deliberate” move had cost the bassist £2.3m by October last year and his losses were continuing.

Mr Wyeth said: “It was as though George Harrison and Ringo Starr had got together at George’s house one Friday night and had acted together to divest Paul McCartney of his shareholding in the Beatles, and didn't tell Yoko about it either.”

Hook receives 1.25% of the band's royalties and other income from merchandising and performances but is seeking up to 12.5%.

Mr Wyeth said the dispute was “not about musical direction or musical differences or personality clashes, but first and foremost about wrongdoers taking control of a company and stripping it of its property”.

However, David Casement QC, for the other band members, said they had acted in an “entirely reasonable” way. Hook’s complaints were “completely misconceived”.

The bassist was either intent on “obstructing” the trio from continuing their success as New Order or wanted to “rejoin the band”, he told the court.

The court heard that the enmity between the former bandmates was such that they cannot even agree whether New Order split or the bassist just left. Judge Cooke urged the parties to “enter into commercial negotiations” rather than allow the case to go to trial, which would incur a £900,000 legal bill.

Since leaving New Order, Hook has performed their back catalogue with a new band under the name Peter Hook and the Light. New Order recently sold out a Brixton Academy show and remain a big draw on the international festival circuit.