Megan Thee Stallion Settles With Former Record Label After Nasty Battle

Meghan Thee Stallion is saying goodbye to her label record after both parties reached an amicable agreement in their years-long legal battle.

The legal dispute began when the talented twerk queen and rapper accused the record company of locking her into an unfavorable contract in 2018. The conflict extended to disputes over one of her albums and eventually led to legal action.

Megan has reached a settlement to end her ongoing legal battle with her former record label, 1501 Certified Entertainment. After more than three years of legal disputes over a contract she deemed "unconscionable," attorneys for 1501 announced that both parties have mutually reached a confidential settlement to resolve their legal differences. 

With this settlement, the "Cognac Queen" artist and the company can kickstart their amicable separation. Even though the specific terms of the settlement, including whether any financial agreement was reached, remain undisclosed, the label's president, Carl Crawford, wrote in a statement:

"Both Megan and 1501 are pleased to put this matter behind them and move forward with the next chapter of their respective businesses."

In the same note, he expressed that he and his company "wish Megan the very best in her life and career." Megan had engaged Carl and 1501 in a three-year legal dispute, contending that she was deceived into signing an unfair record deal in 2018, which fell far below industry standards. 

Her perspective on the deal changed when she entered a new management agreement with Roc Nation in 2019, where she received legal counsel that helped her realize the inadequacies of her previous deal.

The initial dispute regarding the record deal evolved into more legal battles when the "Savage" hitmaker filed another lawsuit in February 2022. For this suit, she asserted that 1501 was failing to categorize her 2021 project, "Something for Thee Hotties," as an "album." 

Per Billboard distinction was crucial because her contract required her to produce three albums. 1501 responded with a countersuit, contending that the project had only 29 minutes of original material.

Megan continued to pursue legal action in August 2022, filing yet another complaint seeking over a million dollars in damages. The complaint alleged that 1501 had "systematically failed" to pay adequate royalties and had "wrongfully allowed for excessive marketing and promotion charges." 

In response, 1501 countered these accusations, referring to the damages demand as "baseless" and asserting that the award-winning rapper owed "millions of dollars." She recently hinted at the possibility of a settlement with the coy during an Instagram livestream, where she said, "I have no label right now."

In April, The Blast asserted that Megan was after a court order to halt spending by 1501 during the gay days of their legal battle. She alleged that Carl intentionally depleted the company's funds to avoid paying her damages.

In a motion filed, the MTV Music Video Awards winner declared that 1501's primary account had less than $10,000, and although money was getting deposited, it wasn't accurately reflected. This action led her to believe that the disappearing funds were benefiting Carl and two other individuals associated with the label, namely Gee Roberson and J. Prince.

Meghan and her legal team scrutinized the contract binding her to 1501 during court proceedings, and the rapper shared her perspective on the matter through social media. She acknowledged, "When I signed, I didn't really know what was in my contract. I think I was, like, 20."

The contract stipulated that Meg would receive 40% of the recording profits while 1501 would retain the remaining 60%. The allocation of figures was an apparent break from the industry standard of a 50/50 split, and that didn't sit right with the "Body" artist.

Meanwhile, Carl clarified his stance on the situation a few months ago, expressing that he had no intention of engaging in public disputes with his former signee. He admitted the past issues within the company's representation and conveyed his commitment to improving the situation. He stated, "I have to take responsibility for anything that happens over here at 1501."