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Megan Thee Stallion accuses label of squandering cash to make itself “judgement-proof” in ongoing legal battle
By Chris Cooke | Published on Friday 14 April 2023
The big beef between Megan Thee Stallion and her label continues. In a new legal filing the rapper accuses 1501 Certified Entertainment of squandering and moving money that she could be due if her ongoing litigation against the music company is successful.
There have been various disagreements between 1501 and Megan Thee Stallion, real name Megan Pete. The core current dispute is about whether or not she has delivered all three of the albums that she is obliged to provide 1501 under her record deal.
That depends on whether you count 2021’s ‘Something For Thee Hotties’ – a collection of freestyles and rarities – as a proper album release. 1501 does not.
In addition to that, Pete reckons she is owed at least a million dollars in royalties by the label. While 1501 argues that Pete actually owes it money, because under that current record deal it is due a share of some of her other revenue streams beyond recordings.
All of this legal wrangling is ongoing, but Pete seemingly now fears that if she prevails in court there won’t be any money in 1501’s bank accounts to pay her any outstanding royalties and damages.
“Instead of following its financial manager’s advice and holding the contested funds in reserve, 1501 has chosen to enrich itself and its consultants, leaving less than ten thousand dollars in the account”, a new legal filing from the Pete side claims, according to Billboard.
“Based on 1501’s under-capitalisation, it is highly probable that 1501 will be judgement-proof by the time Pete is able to obtain a final judgement on the merits of her claims”.
With all that in mind, “Pete seeks the appointment of a receiver to take possession of 1501 until this dispute is resolved, or in the alternative, the appointment of a receiver to take possession of all of 1501’s bank accounts and any other bank accounts controlled or owned by [CEO] Carl Crawford, including the bank accounts to which the money siphoned out of the bank account was transferred into”.
Needless to say, 1501 denies the new claims of wrong-doing, with a legal rep telling Billboard: “1501 strongly disagrees with the substance of Ms Pete’s recent filings. The allegations are without merit and we are confident that 1501 will prevail on these motions and ultimately recover the substantial money that Ms Pete owes 1501″.
