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Megan Thee Stallion sues her record label

On Behalf of | Mar 15, 2020 | Contract Law

Many Texas music fans have eagerly awaited the new release, Suga, from hip-hop celebrity Megan Thee Stallion. The album dropped on March 6, shortly after Megan won a temporary restraining order in court allowing her to release her music. Earlier in the week, Megan sued the record label with which she has a contract, 1501 Certified Entertainment, alleging that her contract provisions were unconscionable under law. She asked the court to let her out of the contract, arguing that the label is taking her income from all sources while doing nothing to promote her work or her music.

Megan Thee Stallion went live on Instagram to discuss the contract dispute with her fans after filing the lawsuit. She said that the company did not want her to release new music and that it took advantage of her as a young, inexperienced artist when she first contracted with 1501. She also said that she signed a management deal with Roc Nation in 2019 and with advice from their entertainment lawyers, realized how problematic her contract was. After she filed her lawsuit, a judge granted Megan a temporary restraining order, allowing her to release her album. While she had originally planned a later release, she moved forward with the album in order to seize the opportunity provided by the order.

Journalists said that an inspection of the contract confirmed many of Megan’s claims, including that the label claimed 30% of all of Megan’s income from various streams, long after all of its expenses had been paid back. Some experts said that this type of contract was not commonly used, although these terms had been seen frequently in the past.

The entertainment business can involve an array of complicated contractual agreements. A contract law attorney may advise entertainers and companies on negotiating a contract or resolving a dispute.

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