Lil Durk, the prominent rapper, finds himself entangled in a legal battle as a fintech firm, Exceed Talent Capital, alleges that he engaged in what they term a "manifest fraud." According to a complaint filed in Manhattan federal court on December 6, Exceed Talent Capital claims that Lil Durk signed deals with two entities for the same song rights, a move they consider fraudulent.
The fintech firm alleges that despite Durk's contractual commitments with them for the recording royalties of his song "Bedtime," he had already entered into an exclusive deal with Sony’s Alamo Records. Exceed Talent Capital's lawyers argue that this intentional misrepresentation has resulted in damages exceeding $12 million.
The lawsuit details how Exceed agreed to pay Lil Durk $600,000 for the recording rights to "Bedtime," intending to incorporate the track into a fractional investment vehicle. This innovative approach would allow investors to purchase ongoing royalties to the song, aiming to provide fans with a unique opportunity to share in the artist's success.
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However, the situation took a turn when Alamo Records issued a cease-and-desist to Exceed in May, revealing that Lil Durk was bound by an exclusive recording agreement with the label. Exceed, seeking resolution, demanded corrective action or a refund of $450,000 already paid to Lil Durk. Unfortunately, the rapper allegedly ignored these requests, leading to the cancellation of the sale.
The legal debacle not only exposed Lil Durk to significant financial claims but also forced Exceed Talent Capital to abandon a sale that had undergone rigorous approval processes with the Securities and Exchange Commission.