Megan Thee Stallion accuses label of draining bank accounts to avoid paying her
Megan Thee Stallion has accused executives at her record label of siphoning money out of the company's bank account to avoid paying her in their ongoing legal action. The Savage rapper, real name Megan Pete, has been locked in a legal battle with her record label 1501 Certified Entertainment for more than two years. She is suing them for royalties and to get released from her contract. In her latest motion, her lawyers claimed that 1501's founder Carl Crawford and his executives "dissipated millions of dollars held in 1501's primary bank account" so that when Megan is potentially awarded a judgment by the courts, there will be no money to pay it. "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," her lawyers wrote, reports Billboard. "Based on 1501's undercapitalization, it is highly probable that 1501 will be judgment-proof by the time Pete is able to obtain a final judgment on the merits of her claims." They have asked a judge to appoint a third party to take over the management of 1501's finances until their legal battle is resolved. Responding to the allegations, 1501's attorneys said, "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." The rapper's lawyers also filed a separate motion asking a judge to summarily rule that 1501 breached their contract by denying all requests to license Megan's music "out of spite" until the case is resolved. A trial in the matter has been set for August.
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Megan Thee Stallion has accused executives at her record label of siphoning money out of the company's bank account to avoid paying her in their ongoing legal action.
The Savage rapper, real name Megan Pete, has been locked in a legal battle with her record label 1501 Certified Entertainment for more than two years. She is suing them for royalties and to get released from her contract.
In her latest motion, her lawyers claimed that 1501's founder Carl Crawford and his executives "dissipated millions of dollars held in 1501's primary bank account" so that when Megan is potentially awarded a judgment by the courts, there will be no money to pay it.
"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," her lawyers wrote, reports Billboard. "Based on 1501's undercapitalization, it is highly probable that 1501 will be judgment-proof by the time Pete is able to obtain a final judgment on the merits of her claims."
They have asked a judge to appoint a third party to take over the management of 1501's finances until their legal battle is resolved.
Responding to the allegations, 1501's attorneys said, "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."
The rapper's lawyers also filed a separate motion asking a judge to summarily rule that 1501 breached their contract by denying all requests to license Megan's music "out of spite" until the case is resolved.
A trial in the matter has been set for August.
