In their ongoing court battle, Megan Thee Stallion has charged officials at her record label with stealing money from the business account in order to avoid paying her.
With her record company 1501 Certified Entertainment, the Savage rapper, actual name Megan Pete, has been embroiled in a legal dispute for more than two years. She is suing them to be released from her contract and get payments.
According to Megan's lawyers, 1501's founder Carl Crawford and his executives "dissipated millions of dollars held in 1501's primary bank account" so that there won't be money available to pay any judgments Megan might receive from the courts.
Her lawyers said that 1501 chose to benefit itself and its consultants rather than retain the disputed monies in reserve as advised by its financial manager, leaving less than $10,000 in the account. It is quite likely that 1501 will be judgment-proof by the time Pete is able to secure a definitive judgment on the merits of her claims, based on 1501's undercapitalization.
They have asked the court to appoint a third party to oversee 1501's financial operations while their legal dispute is ongoing.
Attorneys for 1501 stated in response to the accusations, "1501 strongly disagrees with the substance of Ms. Pete's recent submissions. The claims are unfounded, and we are certain that 1501 will win these motions and finally recoup the considerable debt Ms. Pete owes to the company.
In a second motion, the rapper's attorneys asked the court to decide hastily that 1501 broke their contract by refusing to grant any licenses to use Megan's song "out of spite" while the lawsuit is still pending.
The matter will be tried in court in August.
