Black Sheep Files $750Mil Lawsuit Against UMG Over Unpaid Royalties: Report

Usually, it’s good to hear about iconic Rap groups, but Black Sheep isn’t surfacing for a walk down Hip Hop’s memory lane. Instead, the classic duo—which includes Andres “Dres” Vargas Titus and William “Mista Lawnge” McLean—is reportedly suing Universal Music Group. According to a report by Rolling Stone, the pair have filed a $750 million class action lawsuit against UMG over unpaid royalties.

Black Sheep claims that UMG worked out a deal with Spotify that shortchanged artists in the long run. Universal is accused of exchanging music from artists for cash and Spotify stock.

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The rappers also allege they weren’t advised of this side deal; thus, it violates their contract with UMG’s subsidiary, Polygram.

“In the mid-2000s, Universal struck an undisclosed, sweetheart deal with Spotify,” the lawsuit reportedly reads. “Universal agreed to accept substantially lower royalty payments on artists’ behalf in exchange for equity stake in Spotify – then a fledgling streaming service.”

“Yet rather than distribute to artists their 50 percent of Spotify stock or pay artists their true and accurate royalty payments, for years Universal shortchanged artists and deprived plaintiffs and class members of the full royalty payments they were owed under Universal’s contract.”

NEW YORK, NEW YORK-October 1: Hip-Hop Duo Black Sheep’s Mista Lawnge (William McLean) and Dres (Andres Vargas Titus) appear in a portrait taken on October 1, 1994 in Brooklyn, New York City. (Photo by Al Pereira/MIchael Ochs Archives).
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Following Rolling Stone‘s report, a UMG spokesperson denied Black Sheep’s claims.

“Universal Music Group’s innovative leadership has led to the renewed growth of the music ecosystem to the benefit of recording artists, songwriters and creators around the world,” they said.

“UMG has a well-established track record of fighting for artist compensation and the claim that it would take equity at the expense of artist compensation is patently false and absurd. Given that this is pending litigation, we cannot comment on all aspects of the complaint.”

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50 Cent Recalls Turning Down $1.3 Million Offer From UMG

50 Cent says that he once turned down a $1.3 million offer from Universal Music Group due to the label’s affiliation with Murder Inc. executive Irv Gotti. Gotti had previously admitted to blocking labels from signing 50 during a 2020 interview with B. High of Hot 107.9.

“Irv [Gotti] was talking in the interview and he was talking about he was blocking me,” 50 Cent said during a recent interview. “Like he was blocking everything. He said, ‘I blocked him into a good situation.’ And it just went off. And, I saw the situations I didn’t feel where he felt he was blocking me at that point. But I wouldn’t do business with anyone who had direct associations or any influence to the things that they had that was working.”

LAS VEGAS, NV – SEPTEMBER 20: Recording artist Curtis ’50 Cent’ Jackson of the music group G-Unit performs onstage during the 2014 iHeartRadio Music Festival at the MGM Grand Garden Arena on September 20, 2014 in Las Vegas, Nevada. (Photo by Kevin Winter/Getty Images for iHeartMedia)

From there, 50 further recalled explaining to Tony Yayo that Gotti could “sabotage” everything they had built through that point.

He continued: “So they offered me a million three to do a G-Unit and my solo album at Universal and I just turned the deal down. [Tony] Yayo didn’t understand he was like, ‘What? A million three you not gone do it, what? That’s like saying we hit the lottery and you not going to pick up the ticket.’ And I’m like, ‘Nah it’s not the right deal,’ because it’s in the Universal system. Def Jam and those guys was already making money from that system. Where they could influence and sabotage everything that I had going.”

As for how Gotti is connected to UMG, Murder Inc. Records is a subsidiary of Def Jam, a division of Universal Music Group. Gotti and 50 have been going back and forth on social media for years at this point.

Check out 50 Cent’s story, as shared by HipHopDX below.

[Via]

The Weeknd Expanded His Partnership With UMG To Include Publishing, Merchandise And Audiovisual Releases

Fresh off a massive headlining performance at Coachella, in which he was basically the only artist who could replace Kanye West after a last-minute cancelation, The Weeknd no longer has to prove his star power. The self-proclaimed Starboy (sorry, had to) is locked into a massive deal with Universal Music Group, who have doubled down on their partnership with the artist. Given his excellent new album, Dawn FM, and 2020’s massive release, After Hours, it’s not surprising that UMG now wants to partner with Abel Tesfaye on all “recorded music, publishing, merchandise and video.”

According to Variety, UMG will remain The Weeknd’s home for all things label-related, and take over his future music publishing rights once a deal with Kobalt expires. Universal’s merchandising arm, Bravado, will work with XO on “global merchandising, branding, ecommerce and retail licensing opportunities around future projects and releases.” Also, Republic and UMG will handle all future audiovisual projects. So basically, everything he might get into over the future course of his career.

UMG chairman and CEO Lucian Grainge said the following about the partnership: “Over the past decade, we have been honored to work so closely with Abel, who has quickly become one of music’s most creative and important artists—a once-in-a-generation talent. With Sal and the XO team as our incredible partners, we’ve developed a deep trust and respect that has enabled us to successfully execute Abel’s brilliant vision.”