Black Sheep Files Lawsuit Against Universal Music Over $750M Unpaid Royalties

[LevelUp]

"Black Sheep have filed a massive class action lawsuit against Universal Music Group over unpaid royalties in relation to an alleged side deal with Spotify.

According to Rolling Stone, the duo (comprising Dres and Mista Lawnge) are accusing UMG of owing over $750 million not only to them but their entire artist roster for allegedly breaching contracts with a “sweetheart” deal with Spotify.



Black Sheep allege that Universal accepted both cash and company stock from Spotify in exchange for music from their artists, and then turned around and only counted the cash when it distributed royalty payments.

In the lawsuit, Black Sheep state that the “previously undisclosed” deal violated the contract they have with former Universal subsidiary Polygram dating back to the ’90s, which requires Universal to pay 50 percent of all net receipts connected to exploitation of the duo’s music.

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

“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.”

It continues: “For approximately a decade, Universal omitted from the royalty statements Universal issued to plaintiffs that it had received Spotify stock in connection with the ‘use or exploitation’ of Black Sheep recordings.”

In a statement to the publication, a UMG spokesperson called the allegations “false and absurd.”

“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.”

Spotify was also contacted for comment, but they did not respond.

The $750 million number is derived from a September 2021 Universal report that valued its stake in Spotify at approximately $1.7 billion. The lawsuit alleges a “substantial portion” of that stake stems from the shares Universal and its subsidiaries acquired in or around 2008.

As for exactly how many artists are involved, Black Sheep couldn’t provide an exact number, but they believe “it encompasses at least thousands of artists whose identities can be readily ascertained from Universal’s records.”

Black Sheep Sues Universal Music For $750M Over Unpaid Royalties

 

[Techniec]

Ohhh weee I hope these brothas get paid

 

[Mr Bubbles]

Good. Flavor of the Month stays in rotation.

 

[TheMailMan]

Some old UMG label executive sitting at his desk like " who's the black sheep?" Lol

 

[MurderToCassette]

Hope they (and everyone else who was exploited) get $$$. I fukk with their records heavy.

 

[cheek100]

I hope this just the tip of the iceberg. The conglomerates been fukn artists so long they think it’s a fair play.

 

[Doobie Doo]

Settlement>>>>>>>>>Trial

You can go with this or you can go with that

 

[shazam]

"Black Sheep have filed a massive class action lawsuit against Universal Music Group over unpaid royalties in relation to an alleged side deal with Spotify.

According to Rolling Stone, the duo (comprising Dres and Mista Lawnge) are accusing UMG of owing over $750 million not only to them but their entire artist roster for allegedly breaching contracts with a “sweetheart” deal with Spotify.



Black Sheep allege that Universal accepted both cash and company stock from Spotify in exchange for music from their artists, and then turned around and only counted the cash when it distributed royalty payments.

In the lawsuit, Black Sheep state that the “previously undisclosed” deal violated the contract they have with former Universal subsidiary Polygram dating back to the ’90s, which requires Universal to pay 50 percent of all net receipts connected to exploitation of the duo’s music.

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

“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.”

It continues: “For approximately a decade, Universal omitted from the royalty statements Universal issued to plaintiffs that it had received Spotify stock in connection with the ‘use or exploitation’ of Black Sheep recordings.”

In a statement to the publication, a UMG spokesperson called the allegations “false and absurd.”

“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.”

Spotify was also contacted for comment, but they did not respond.

The $750 million number is derived from a September 2021 Universal report that valued its stake in Spotify at approximately $1.7 billion. The lawsuit alleges a “substantial portion” of that stake stems from the shares Universal and its subsidiaries acquired in or around 2008.

As for exactly how many artists are involved, Black Sheep couldn’t provide an exact number, but they believe “it encompasses at least thousands of artists whose identities can be readily ascertained from Universal’s records.”

Black Sheep Sues Universal Music For $750M Over Unpaid Royalties

that highlighted part could be huge if they can prove it

 

[dubsmith_nz]

Damn that's wild, they might get a lot of people paid if they get the right representation.

 

[Tommy Gibbs]

that highlighted part could be huge if they can prove it

highly unlikely. The euro joo pockets are too deep to fuk with in court. This will drag out for decades until a settlement is reached which will all go to other joo laywers. I believe everything that was stated though. There is no such thing as an honest record label. Never have been and never will be.

 

[TripleAgent]

Good luck to them.

 

[ℒℴѵℯJay ELECTUA]

I hope they get something!!

 

[up in here]

It’s a class action. Their cut will be significantly less than $750M. But I hope they and anyone else who was getting robbed gets paid whatever it is they are owed.

 

[Sir Brehsington]

This should pinned and discussed on a bigger level.


All these bytch ass executives eating off the blood sweat and tears of the vets.

 

[Sir Brehsington]

Also notice how dismissive these CAC execs are when it comes to paying a fair share to artists and producers who built their empires. shyt is sick.