Last October saw multi-platinum nü-metal stars Limp Bizkit file a massive $200 million lawsuit against Universal Music Group. In that suit, which has been headed up by the band’s vocalist Fred Durst, it was alleged that Universal Music Group had engaged in shady accounting practices in relation to paying out royalties for numerous artists.
The suit claimed that key releases the Limp Bizkit catalog and artists signed with Durst‘s past Flawless Records imprint, which includes albums from Puddle Of Mudd, The Revolution Smile and more, were victims of said alleged accounting discrepancies.
Per Durst, he claimed that Universal Music Group had yet to receive royalties of any substantial amount of the 45 million copies of albums Limp Bizkit sold/streamed while on the label. Durst claimed that the UMG had informed him that payments had not been made as the label had yet to recoup the $43 million they had spent on the band upfront in advances and associated costs.
Upon obtaining new financial representation, Durst was able to secure royalty payments of $1.03 million to Limp Bizkit and $2.3 million via his Flawless Records venture and associated artists. Durst disputes UMG‘s accounting processes as being fraudulent and sought $200 million in damages against the label via his suit, whilst also seeking to have Limp Bizkit‘s record contracts with the label, as well as those for artists under his Flawless Records venture, voided.
Such an action would essentially see the rights to the master recordings land in the hands of the bands, or at the very least Durst in some cases. Universal Music Group denied Durst‘s allegations in November, claiming they were “based on a fallacy.”
One key component of Durst‘s case was struck down in court last Friday, January 17th. Judge Percy Anderson denied the band’s demands to have their aforementioned recording contract with Universal Music Group voided, essentially siding with UMG‘s accounting data. Per that ruling, Anderson stated:
“The Court therefore concludes that Plaintiffs have not plausibly alleged the type of ‘substantial’ or ‘total failure’ in the performance of the contracts that could support rescission of the parties’ agreements.”
Much of the band’s case was centered around this aspect of the case, including their attempts at establishing copyright infringement against UMG and subsequent declaratory relief. Per Rolling Stone, twelve further claims in the suit relating to breach of contract, fraudulent concealment and more remain unaddressed as of yet.
The band now have until February 03rd to amend their claims of copyright infringement or the case will be dismissed and need to be refiled in a different court. Frank Seddigh, who is representing Limp Bizkit in the case, commented on this latest ruling:
“The Court ruled on three of our claims against Universal and gave us the opportunity to amend our complaint further — in order to keep litigating in Federal Court. The facts speak for themselves. Universal will be held accountable for its actions and will not get away with its conduct at the expense of artists.”
