Sly Stone Wins Millions in Family Stone Royalties

Sly Stone just scored $5 million thanks to a L.A. jury, which ruled the psychedelic funk singer was done wrong by a former manager who pilfered his fortune.

When Sly was on the skids, his former manager allegedly convinced him to sign over all his royalties to a company the manager picked ... for tax reasons. Sly says the manager assured him he'd be protected.

But Sly says the manager fleeced him, and apparently the jury agreed. The company that got the royalties must pay the frontman of Sly & the Family Stone $2.5 MIL. The manager, Jerry Goldstein, must ante up $2.45 MIL. And the lawyer who worked with Goldstein has to kick in 50K.

Sly has been destitute with severe drug problems ... living in his van.