The 25-year-old rapper filed for a temporary restraining order against 1501 Certified Entertainment, LLC and its CEO Carl Crawford in Harris County, Texas on Tuesday.
She also accused the defendants of breach of contract, common law fraud, fraudulent inducement, fraud by non-disclosure, tortious interference with prospective business relations, violation of the Deceptive Trade Practices Consumer Protection Act, negligent misrepresentation, breach of fiduciary duty and negligence.
In addition to the temporary restraining order, Megan is seeking a temporary and permanent injunction and a declaration that her contract is “unconscionable, unenforceable and/or void.” Furthermore, she is seeking monetary damages in excess of $1 million.
According to court documents obtained by E! News, the “Hot Girl Summer” star, née Megan Pete, has accused the company and its principal of taking the “extraordinary step” of instructing the distributor of her records, 300 Entertainment, to not “release or distribute any of her new music.” Per the documents, the music is scheduled to be released on March 6 and this alleged instruction, “will have a devastating impact and cause irreparable injury to [Megan’s] career, for which monetary damages will in no way suffice.”
“Defendants and their agent J. Prince, who is notorious in the music industry for bullying and strong-armed tactics, publicly expressed displeasure on social media when Pete associated Roc Nation (Jay-Z’s founded company) as her manager,” the documents continued. “From that point onward, Pete was attacked, and threatened on social media, on information and belief, by Prince, 1501, or those acting on their behalf.”
In addition, Megan claimed in the documents that she’s raised concern over the “unconscionable nature” of her contract, sought to renegotiate its “entirely onerous provisions” and “has been forced to resort to self-help to try to mitigate the damage to her due to the defendants’ complete failure to take necessary actions” to protect her interest. For instance, she accused the defendants of failing to register her songs with the U.S. Copyright Office and failing to finalize agreements with third parties. She also alleged the defendants “fraudulently induced her into the contract.
“Defendants take the vast majority of the recording income, and Pete is left making very little for her work, although 1501 is essentially required to do nothing, and in fact is doing nothing,” the documents stated. “The 60/40 split is well below industry standard. In addition, in return for Defendants’ interest, they would be expected to perform standard record label functions (e.g., A & R, manufacturing, promotion, advertising, and accounting, etc.) which they are not performing, relying entirely on 300 Entertainment and Pete’s manager.”
According to the documents, Megan also claimed her contract requires her to grant the defendants a 50 percent copyright interest in all of the songs she writes and to grant them 100 percent administration rights so they “control her songs completely.”
“No advances were paid Pete for these rights,” the documents stated. “Under industry standard, Pete’s royalties should be 75/25 in her favor, she should have received advances, and her royalty on publishing should not be crossed with any un-recouped balance on the master recording side.”