1990 SPECIAL REPORT: "MILLI VANILLI"
Lip-syncing exposure and media backlash, 1989–1991
Beth McCarthy-Miller, then an executive with MTV, says the duo's English language skills, when they came in for their first interview with the channel, stirred doubts among those present as to whether they had sung on their records.[18] The first public sign that the group was lip-syncing came on 21 July 1989, during a live performance on MTV at the Lake Compounce theme park in Bristol, Connecticut. As they performed, a hard drive issue caused the recording of the song "Girl You Know It's True" to jam and skip, repeatedly playing the partial line "Girl, you know it's..." through the speakers. "I knew right then and there, it was the beginning of the end for Milli Vanilli," recalled Pilatus of the incident. "When my voice got stuck in the computer, and it just kept repeating and repeating, I panicked. I didn't know what to do. I just ran off the stage."
Downtown Julie Brown ran after Pilatus and convinced him to finish the set. "With a bit of pushing and screaming, and a couple of F-words I think as well, I got them back out there," Brown explained on VH1's Behind the Music. Despite the mishap, the concert audience seemed neither to care, nor even to notice, and the concert continued as if nothing unusual had happened.
In a March 1990 issue of Time magazine, Pilatus was quoted proclaiming himself to be "the new Elvis", reasoning that by the duo's success they were more talented musically than Bob Dylan, Paul McCartney and Mick Jagger. This was denied by Fab Morvan, as recently as 2017, saying that Pilatus never used those words and that the quote was taken out of context, likely due to Pilatus still not having a full grasp of the English language.
Unlike the international release of All or Nothing, the inserts for the American version of the album explicitly attributed the vocals to Morvan and Pilatus. This prompted singer Charles Shaw to reveal in December 1989 that he was one of the three actual vocalists on the album and that Pilatus and Morvan were impostors. Farian reportedly paid Shaw $150,000 to retract his statements, though this did not stem the tide of public criticism.
On the 21 April 1990 episode of In Living Color, Keenan Ivory Wayans and Damon Wayans parodied Milli Vanilli in a sketch, mocking the duo's accents, fashion sense, and dance moves. This led to further jokes on the duo, such as David Letterman's top-10 list describing 10 jobs they could do other than music.
Because of growing public questions as to who sang in the group, as well as Morvan and Pilatus' demand to Farian that they be allowed to sing on the next album, on 14 November 1990, Farian announced that he had fired them and confessed they did not sing on the records.
Confronted by Los Angeles Times reporter Chuck Philips, Pilatus confirmed the deception. "It’s True: Milli Vanilli Didn’t Sing" read the newspaper's headline. "I feel like a mosquito being squeezed," Pilatus said. "The last two years of our lives have been a total nightmare. We've had to lie to everybody. We are true singers, but that maniac Frank Farian would never allow us to express ourselves."
The next week, the National Academy of Recording Arts and Sciences revoked Milli Vanilli's 1990 Grammy for Best New Artist. Pilatus and Morvan gave a press conference for more than 100 journalists in Los Angeles where they stated their willingness to return their Grammy Award. The duo said they had "made a deal with the devil," and they sang and rapped for the room in order to prove that, although they hadn't sung on their records, they could, in fact, sing.
After these details emerged, lawsuits were filed under various U.S. consumer fraud protection laws against Arista Records, Pilatus and Morvan. One such filing occurred on 22 November 1990, in Ohio, where lawyers filed a class-action lawsuit asking for refunds on behalf of a local woman in Cuyahoga County who had bought Girl You Know It's True. When the suit was filed, it was estimated at least 1,000 Ohio residents had bought the album. On 12 August 1991, a proposed settlement of a refund lawsuit in Chicago, Illinois, was rejected. This settlement would have refunded buyers of Milli Vanilli CDs, cassettes, records and singles. However, the refunds would only be given as credits for future Arista releases.
On 28 August, a new settlement was approved; it refunded those who attended concerts as well as those who bought Milli Vanilli recordings. An estimated 10 million buyers were eligible to claim a refund, and they could keep the refunded recordings. The refund deadline passed on 8 March 1992.
Adding to the controversy, in December 1990 singer-songwriter David Clayton-Thomas sued Milli Vanilli for copyright infringement, alleging that the title song of All or Nothing used the melody from his 1968 composition "Spinning Wheel", a hit for his group Blood, Sweat & Tears.