CELEBRITIES
Megan Thee Stallion Claims 1501 Certified is draining bank accounts to avoid paying up
Claims are being hurled at Carl Crawford, founder of the label 1501 Certified.
Megan Thee Stallion has been fighting with her record label for over 2 years after claims that the label took advantage of a young artist back in 2018 for a contract that was well below industry standards.
The two sides of the case have escalated over time. Megan has claimed $1 million in damages over claims that 1501 had not paid enough royalties, while 1501 claimed Meg owed them millions.
What’s happened since then
Her immediate concern is the company’s money running low. Megan Thee Stallion, real name Megan Pete, claims that 1501 is intentionally draining its bank account to avoid paying her the amount she feels entitled to.
“Instead of following its financial manager’s advice and holding the contested funds in reserve, 1501 has chosen to enrich itself and its consultants, leaving less than ten thousand dollars in the account,” Megan Thee Stallion’s lawyers wrote.
“Based on 1501′s undercapitalization, it is highly probable that 1501 will be judgment-proof by the time Pete can obtain a final judgment on the merits of her claims.”
Where is the money going? Megan claims that Crawford, J. Prince and Gee Roberson are the only ones getting paid at the moment.
“Pete seeks the appointment of a receiver to take possession of 1501 until this dispute is resolved, or in the alternative, the appointment of a receiver to take possession of all of 1501′s bank accounts and any other bank accounts controlled or owned by Carl Crawford, including the bank accounts to which the money siphoned out of the bank account was transferred into.”
The main concern is when the verdict is released, the label 1501 won’t have a dollar in their account to use to pay the rapper, likely filing for bankruptcy and getting out of the case.
“1501 strongly disagrees with the substance of Ms. Pete’s recent filings,” said Kenneth D. Freundlich of Freundlich Law and LeElle B. Slifer of Winston & Strawn LLP.
“The allegations are without merit, and we are confident that 1501 will prevail on these motions and ultimately recover the substantial money that Ms. Pete owes 1501.”
The question remains for the jury to decide in August this year if Megan Thee Stallion will get the money she feels she deserves.