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 the first appearance of singer Michael McDonald on a Steely Dan album. The album cover features a picture of a katydid, a "singing" (stridulating) insect related to crickets and grasshoppers.  Band members Walter Becker and Donald Fagen were unhappy with the album's sound quality owing to an equipment malfunction with the then new dbx noise reduction system. The group has claimed that the damage was mostly repaired after consulting with the engineers at dbx, but Fagen and Becker still refused to listen to the completed album.