4:08 PM PT -- 7/16 -- Soundgarden agreed to drop claims about the charity concert after Vicky's lawyers threatened to seek sanctions ... according to new legal docs obtained by TMZ.
1:16 PM PT -- A rep for Soundgarden tells TMZ, "Soundgarden’s goal is still the completion of their final studio album and they are pleased that after many requests Vicky’s attorneys last night finally offered an accounting of the profits from the Chris Cornell Tribute Concert. Soundgarden asks that Vicky now donate all of the remaining funds in her Foundation to causes that are important to all of us."
Chris Cornell's widow, Vicky, is threatening members of her late husband's band, accusing them of making a fortune off Chris' back and then viciously attacking her and her kids and screwing them out of what's rightly theirs.
Vicky's lawyer, legal pit bull Marty Singer, fired off a blistering letter to the remaining members of the group, expressing outrage at their latest legal move -- accusing Vicky of stealing money from the Chris Cornell Tribute Concert. Singer says the claim is BS, noting almost 2 million bucks went to charity and overhead was only $43k.
Singer also claims the tribute to Chris lined the pockets of the band members, who demanded reimbursement for expenses. Singer clearly doesn't buy the "expenses" argument.
The demand letter, obtained by TMZ, calls the allegations against Vicky "mean spirited drivel." Singer says band members have tried to "brow-beat her into giving up the rights to her late husband's copyrighted works" by initiating a hate campaign, enlisting "cyber-stalkers and trolls" to harass not only Vicky but her kids.
The letter notes band members have liked defamatory, social media allegations ... like suggesting Vicky operates a brothel from her home and that she "pimped out" her daughter.
Vicky's lawyer succinctly said, "Shame on you and shame on your clients [who] have made millions of dollars off of Chris Cornell's hard work and talent."
The letter ends with a threat of a malicious prosecution lawsuit against not only the band members but their lawyer as well ... that is, unless the band immediately drops its fraud claim against Vicky.