November 12 [14:00 EDT] -- The Dru Hill lawsuit against their label Island Records has hit another wrinkle.

The "Los Angles Times" reported on Tuesday that an executive at Polygram, Eric Kronfeld, was asked why he hired an individual with a criminal record -- the Island employee who allegedly hit Dru Hill's manager with a pool cue, setting the suit in motion.

Kronfeld's answer was that if he didn't hire African-Americans with criminal records, "then there would be virtually no African-American employees in our society or in our industry.

Kronfeld has been reprimanded by Polygram with a demotion and an admonishing statement: "Eric Kronfeld made a statement with which we strongly disagree.

The Dru Hill case is slated to open on November 17, but a source close to the case says a settlement could be announced this week.