It was reported last week that Stolen Transmission (home to locals Schoolyard Heroes), was dropped from Island/Def Jam. JZ posted about the news here, he said it was “totally unbelievable,” and he was right. Folks at IDJ are saying label owner Sarah Lewitinn jumped the gun on spreading the news and Stolen Transmission is still part of IDJ.

Via Billboard.biz:

Despite reports that indie label Stolen Transmission has exited the Island Def Jam umbrella, the business relationship might be firmly intact. A source tells Billboard.biz that details need to be worked out and at the moment Stolen Transmission is still a part of IDJ.

“Meetings are scheduled for next week between IDJ folks and Rob Stevenson (the A&R man who was also let go and championed the indie at IDJ), and we plan on talking about how to move forward,” the source told Billboard.biz “(Stolen Transmission founder) Sarah Lewitinn jumped the gun when she wrote her posts over the weekend. At this point, Stolen Transmission is still an IDJ venture, and the expectation is that it will remain a venture.”

The indie’s staff was cut last week as part of IDJ’s wider layoffs. Afterwards, Lewitinn, via her personal blog, wrote that the label has started in her bedroom and “now it’ll just go back to being run from my apartment again. We plan on continuing with Stolen Transmission and are really excited to be returning to our indie roots.”