Lil Durk has been hit with a fraud lawsuit for allegedly trying to sell two separate companies the rights to the same song.
On December 6th, Exceed Talent Capital filed a federal lawsuit in Manhattan against the rapper, claiming they paid him $450,000 of a $600,000 deal for the exclusive rights to his record, “Bedtime,” in August 2022. However, in May 2023, Exceed claims Durk’s label, Alamo Records, contacted the company and revealed they were the rightful owners of the record.
Exceed claims they were unaware that Durk had already sold the rights to Sony/Alamo for $450,000 before their deal. They’d only found out about the previous agreement when Alamo issued a cease-and-desist. Per the lawsuit, Exceed says they demanded Durk return the money but were met with radio silence.
https://www.instagram.com/p/Cz0BSWUuGXl/?hl=en
As Hip-Hop DX explains, Exceed wanted to purchase the record as part of what would have been a “fractional investment” deal. In this type of setup, ongoing royalties to the song can be sold in small portions, allowing others, including fans, to make money off the record in a stock-type marketplace. For this reason, the Securities and Exchange Commission had to issue clearance for the sale, and once it was voided, Exceed was subjected to millions in penalties.
“Exceed was compelled … to return the funds that had been invested by third parties in the Offering, further significantly damaging Exceed’s reputation and relationships with its partners and investors,” the company stated in its suit.
Exceed is seeking over $12 million in damages. Durk nor his team has publicly responded.
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