Lil Durk is currently facing legal action after allegedly attempting to sell the rights to a song twice.
Court documents obtained by HipHopDX reveal that Exceed Talent Capital, who filed their complaint on December 6, argues that Durkio had contractual obligations to them for the track “Bedtime.”
However, it is alleged that he also sold the rights to Sony Alamo Music, leading Exceed to accuse him of fraudulent behaviour.
The court document states: “Through this action, plaintiff Exceed Talent Capital, LLC (“plaintiff” or “Exceed”) seeks redress against defendants for their manifest fraud and concomitant breaches of the parties’ Music Revenue Rights Agreement (the “Agreement”), through which defendants purported to grant Exceed significant rights in connection with a sound recording by defendant Durk Derrick Banks (“Banks”), a well-known recording artist who is professionally known as Lil Durk.”
Exceed also asserts that they acquired the song rights for $600,000 under the expectation of a “fractional investment” plan. This particular scheme allows for the sale of small portions or “fractions” of ongoing royalties, enabling various individuals, including fans, to benefit financially.
In this scenario, the rights to a song can be likened to stocks, where each investor receives a portion of their investment based on the number of shares they purchased.
However, Lil Durk, whose song “All My Life” is a nominee for the DX Award for Best Hip Hop Song of 2023, had supposedly already sold the rights to “Bedtime” to Sony Alamo for $450,000. Exceed claims that they were unaware of this sale until they received a cease-and-desist notice from the record label in May.
To make matters worse, Exceed alleges that they had to obtain clearance from the Securities and Exchange Commission (SEC) before presenting the deal to Lil Durk, and the cancellation of the sale resulted in significant penalties.
Lastly, Exceed asserts that they attempted to recover the $450,000 that had allegedly already been paid for the purchase from the rapper, but Lil Durk refused to comply.
As a result, Exceed is seeking $12 million in damages.
Check out the complaint in full below:
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