The band reunited with Tom Dowd at Criteria Studios in Miami to cut their reunion album, which was released in February 1979 as Enlightened Rogues, a term Duane had used to describe the band. While the band "tried to make it happen," they later concluded that the chemistry was not there; the album was a minor commercial success, which was credited to the production work from Dowd. Betts filed a lawsuit against Walden for nonpayment of record and publishing royalties, and Betts's lawyer, Steve Massarsky, began managing the group. Betts won the lawsuit, and the rest of the band filed suit while Capricorn declared bankruptcy that October. Massarsky led the successful effort to sign the band with Arista, which pushed the band to "modernize" their sound. "[Arista founder] Clive Davis destroyed any hope that we had that we could make the thing work again," said Trucks later. "He wanted us to be a Southern American version of Led Zeppelin and brought in outside producers and it just kept getting worse."
Their first Arista effort, Reach for the Sky (1980), was produced by Nashville songwriters Mike Lawler and Johnny Cobb. Bonnie Bramlett, who toured with the band near the end of the decade, sang lead on one song. Lawler soon became a part of the band's touring ensemble, incorporating center-stage keytar solos "that most fans consider the band's nadir." Drugs remained a problem with the band, particularly among Betts and Allman. Although the album was made with the intention of creating a hit single, the genre of Southern rock was waning considerably in the mainstream. The band again grew apart, firing longtime roadie "Red Dog" and replacing Jaimoe with Toler's brother Frankie, who had been a member of Great Southern. The main point of contention was Jaimoe's insistence that his wife and manager, Candace Oakley (Berry's sister), handle his business affairs. "One of the real blights on the history of the Allman Brothers Band was that Jaimoe, this gentle man, was fired from this organization," said Allman later. Not long after, "the band changed managers, hiring the promoter John Scher after Massarsky eased himself out, reportedly saying, 'It's a million-dollar headache and a quarter-million-dollar job.'"
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