LOS ANGELES (CelebrityAccess) — Rapper Lil Wayne has sued Universal Music Group and SoundExchange for $40 million, claiming that the label diverted money to repay the $100 million it advanced to Cash Money Records, the label home of artists such as Drake and Nicki Minaj.
According to Courthouse News, Wayne, AKA Dwayne Carter Jr. claims that he signed with Cash Money in 1998, and in 2008, was given joint ownership of master recordings by artists he helped to bring to the label, including Nicki Minaj, Tyga and Drake.
Carter alleges that Universal diverted proceeds from these recordings and used 100% of the money to repay Cash Money's debts. Carter claim in his suit that Universal advanced $100 million to Cash Money, of which $60 million is still outstanding, but that the debt was not incurred by Carter, or his obligation.
He claims that neither he nor Young Money was a party to Universal's distribution agreement with Cash Money, nor were they recipients of any portion of the $100 million advance.
Carter seeks $40 million and punitive damages for breach of contract and fiduciary duty. – Staff Writers