Back on March 2, 2020, Megan Pete (aka Megan Thee Stallion) filed a lawsuit against her label, 1501 Certified Entertainment and its CEO Carl Crawford, asking for $1M and a termination of her contract. She claimed that the label had engaged in fraud, breach of contract, negligent misrepresentation, and other violations of civil law. But before that on March 1st, she also took to her IG Live and claimed that the label was blocking her from dropping any new music, so with the lawsuit filing on the 2nd, a Texas judge granted Megan a temporary restraining order against the label which allowed her to release her song Suga.
According to sources, the deal that Megan is currently in with 1501 is a “360 deal” where 1501 takes 50% share of Megan’s publishing, 30% of her touring income, 30% of her merchandising, control of her merchandising rights, and a cut of her passive income such as sponsorships and endorsement deals. This was all brought to light once Megan connected with ROC Nation and her new manager T.Farris.
On April 13th, Megan and Crawford went to court again because Crawford wanted to move the trial to arbitration, but Judge Robert Schaffer agreed to allow the case to continue in court. As of April 30th, Crawford and his attorney Thomas Van Arsdel are seeking to have the case thrown out or re-filed stating that Megan has not stated a maximum amount that she is seeking from the label, and that his client (Crawford) is not bound to follow the Deceptive Trade Practices Act that Megan is accusing him of violating. Stay tuned to see where this case is headed.
Lerae Funderburg, Esq. is the Managing Attorney at Funderburg Law, LLC, an Atlanta based entertainment law firm. Lerae has almost 10 years of experience in entertainment law in both music law and film law. As an entertainment lawyer and blogger, Lerae keeps her viewers and subscribers up to date with entertainment law news, especially in the areas of music, copyright law and trademark law. If you are local to Atlanta, call and set up a consultation! She would love to hear from you!