Megan Thee Stallion has accused executives at her file label of siphoning cash out of the corporate’s checking account to keep away from paying her of their ongoing authorized motion.
The Savage rapper, actual identify Megan Pete, has been locked in a authorized battle along with her file label 1501 Licensed Leisure for greater than two years. She is suing them for royalties and to get launched from her contract.
In her newest movement, her legal professionals claimed that 1501’s founder Carl Crawford and his executives “dissipated thousands and thousands of {dollars} held in 1501’s major checking account” in order that when Megan is doubtlessly awarded a judgment by the courts, there might be no cash to pay it.
“As a substitute of following its monetary supervisor’s recommendation and holding the contested funds in reserve, 1501 has chosen to counterpoint itself and its consultants, leaving lower than ten thousand {dollars} within the account,” her legal professionals wrote, stories Billboard. “Based mostly on 1501’s undercapitalization, it’s extremely possible that 1501 might be judgment-proof by the point Pete is ready to acquire a last judgment on the deserves of her claims.”
They’ve requested a decide to nominate a 3rd get together to take over the administration of 1501’s funds till their authorized battle is resolved.
Responding to the allegations, 1501’s attorneys mentioned, “1501 strongly disagrees with the substance of Ms. Pete’s current filings. The allegations are with out benefit and we’re assured that 1501 will prevail on these motions and in the end get well the substantial cash that Ms. Pete owes 1501.”
The rapper’s legal professionals additionally filed a separate movement asking a decide to summarily rule that 1501 breached their contract by denying all requests to license Megan’s music “out of spite” till the case is resolved.
A trial within the matter has been set for August.
