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''Katy Lied'' is the fourth album by Steely Dan, originally released in 1975 by ABC Records. It went gold and peaked at #13 on the US charts. The single "Black Friday" also charted at #37.
It is also notable for the first appearance of singer Michael McDonald on a Steely Dan album. The album cover features a picture of a katydid, a type of cricket. This is most likely a pun on the album's title, although a lyric in the song "Doctor Wu" mentions "Katy tried, I was halfway crucified", and "Katy lies, you can see it in her eyes," which could very well be what the album's title refers to. Jeff Porcaro, then only 21 years old, played all drums on the album apart from "Any World (That I'm Welcome To)", which features legendary session drummer Hal Blaine.
Band members Walter Becker and Donald Fagen were not happy with the album's sound quality due to an equipment malfunction with the dbx noise reduction system. They refused to listen to the completed album. However, to most audiophiles and fans of the group it is difficult, if not impossible, to hear the alleged sound imperfections. It is now considered one of Becker and Fagen's most important records, both musically and technologically.
The album was re-issued by MCA Records after ABC Records was bought by MCA in 1979. - Wikipedia