Chicago-based rapper, Lil Durk, is currently entangled in a legal battle with Exceed Talent Capital.
According to the startup capital, the music artist has committed “fraud” by granting song rights to two different companies.
Per the lawsuit, Lil Durk’s actions resulted in over $12 million in damages for the business.
The lawsuit also contends that Lil Durk entered into an agreement with Alamo Records long before his association with Exceed.
Consequently, it implies that the assertions and guarantees made in the contract with Exceed were intentionally untrue as of the time they were presented by the defendants.
Again, Exceed revealed that it paid Lil Durk for the exclusive rights to transform his track Bedtime into a fractional investment opportunity. However, the startup claimed to be blindsided when it discovered that the rapper had an exclusive deal with Alamo Records.
The issues only came to light after Alamo Records issued a cease-and-desist letter to Exceed Talent Capital in May 2023. The label informed them that Durk was under an exclusive recording agreement. Emphasizing that he had no authority to sell his recording royalties to any other entity.
In the face of such a legal hurdle, Exceed informed Lil Durk that he either find a solution to the situation or refund the $450,000 already paid.
The musician, again to reports, ignored these pleas and the fallout from the situation proved costly for Exceed Talent Capital.
The lawsuit claims that the startup had to cancel the sale after already investing “significant time, effort, and financial resources.” They also had to go through the trouble of securing approval from the Securities and Exchange Commission. The damages are estimated to exceed a staggering $12 million, leaving Exceed in a precarious position.
Interestingly, Lil Durk has enjoyed success on the charts. He reached Number 2 on the Hot 100 earlier this year with his hit song, All My Life.
His actions behind the scenes have, however, sparked a legal battle and the effects of his actions have jeopardized the financial standing of the business.