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→Rehab and Recovery
In summer of 2002, Rick Rubin called Reznor in regard to country music legend [[Johnny Cash]] recording a cover of the song "[[Hurt (song)|Hurt]]." Reznor was honored and okayed the recording since Rubin has done great work with Cash, and it wasn't very likely that "Hurt" would make the cut. In November 2002 Reznor received a CD containing Cash's cover and wasn't sure what to think of it. About four months later he received a DVD containing a music video for the song. Reznor was flattered, honored, and moved to tears by the results.
At a June 2003 meeting with Malm to discuss their joint business affairs, Reznor learned for the first time from the accountant that he had advanced millions of dollars more to the joint companies (which were operating at a loss) than Malm had, with no realistic expectation of those funds being repaid. In September, having concluded that Malm had "run [his] finances into the ground", Reznor hired an outside business management firm for the first time, and based on their findings, fired Malm in December. Malm sued Reznor in April 2004 for $2.2 million in unpaid commissions, and Reznor countersued for breach of fiduciary duty and fraud. A New York jury trial in 2005 found Malm liable for breach of fiduciary duty, fraud, conversion, and breach of contract, and awarded Reznor a total of $4.62 million in damages and interest. Reznor signed with manager Jim Guerinot at Rebel Waltz. Malm continued running Nothing Records for a few years, but without its biggest artist, it soon became defunct.
Reznor spent much of 2003 working on his other projects, which never went anywhere. No one in Tapeworm was pleased with the results of their recordings, and Reznor felt that de la Rocha wasn't ready to be a solo artist. The time out of the spotlight helped his psyche and got him to a better place. In addition to finding himself more mentally clear, Reznor was taking better care of himself physically, replacing the addictions that nearly killed him with healthier habits that would aid in his overall well-being. By January of 2004, Reznor was ready to write and record a new Nine Inch Nails album.