''This is a scorched-earth policy,'' J. Cheney Mason, Trans Continental's co-lead trial counsel, told the Orlando Sentinel. ''We're going to shut them down. We believe there will be no tours, no performances, no rehearsal or recordings'' other than those benefiting Trans Continental until contract disputes are resolved. According to Billboard, BMG Germany signed a deal with Trans Continental to distribute 'N Sync worldwide. But 'N Sync's representatives claim the deal is not enforceable because the group never an signed an acknowledgement of the agreement.

RCA originally planned to release a follow-up to 'N Sync's wildly successful debut album late this year, but the projected release date -- whether on Jive, RCA or elsewhere -- has since been pushed back to 2000.

Meanwhile, rival boy group the Backstreet Boys [ tickets ] -- who, like 'N Sync, were first managed by Pearlman -- are trying to leave Jive. According to Billboard, attorneys representing the Backstreets sent a letter to Jive earlier this month claiming the group's contract with the label is void. The Backstreet Boys -- who reportedly have long considered 'N Sync to be a pale imitation of themselves -- are said to be unhappy about the prospect of 'N Sync joining their label, but also claim that there are other reasons for the split.

''They're tired of being exploited,'' an unnamed source close to the Backstreet Boys reportedly told Billboard. ''Their unhappiness [with the label] is rooted in their feeling of betrayal and deceit.''

Lawsuits are almost sure to be filed, since Jive holds that the Backstreet Boys are signed to a long-term, exclusive recording agreement.

Last year, the Backstreet Boys broke from Pearlman, who is credited with much of the group's early development. In an out-of-court settlement, Pearlman reportedly received an equal partnership with members of the group.

Both 'N Sync and the Backstreet Boys have sold seven millions copies of their latest albums in the U.S.