In the early 90’s, Pearlman became fascinated with the success of the pioneering modern boy band, the New Kids on the Block. He eventually went so far as to found his own label, Trans Continental Records, with the idea of repeating the NKOTB equation. His first hand crafted group was The Backstreet Boys. The five unknowns were brought together by a massive talent search, but went on to sell 100 million albums. He followed this success up with the equally effective repetition of NSync, and later the ABC-MTV reality group, O-Town.
Several years after his heyday, nearly all of the major artists on Lou Pearlman’s Trans Continental Records sued him, and won, for “fraud and misrepresentation.” Though most of the lawsuits held a confidentiality agreement, it is known that both the Backstreet Boys and NSync suits involved unpaid revenues.