Fred Durst‘s Limp Bizkit-related lawsuit against Universal Music Group is rolling forward, with some new developments having taken place this morning, March 24th. This past October, Durst took legal action against Universal Music Group, filing a $200 million lawsuit in which he accused the label of breach of contract, fraudulent concealment, fraudulent business practices, copyright infringement and more.
At the heart of the dispute are royalty payments for Durst‘s time with that label, not only as the frontman of Limp Bizkit, but also for his stint running the Flawless Records imprint, which had signed the likes of Puddle Of Mudd and more in the early 2000s.
Durst claims to have repeatedly been told by the label over the years that he and his Limp Bizkit bandmates had yet to receive any recording royalties from UMG due to having not yet recouped the $43 million in advances issued to the band, despite some 45 million albums sold.
Unhappy with the accounting, Durst hired new financial representation last year, who upon digging, claim to have discovered $1.03 million in royalty funds awaiting payment to the band, and another $2.3 million to Durst‘s Flawless Records imprint.
And this is where the dispute begins to take hold, as Durst claims to have received no notification that UMG had funds awaiting him and the band. He went so far as to claim that UMG informed him that his lack of advance notice of funds awaiting him was a result of a “software error.”
Durst however alleged that there were more nefarious forces at work, with his initial complaint claiming that UMG had purposely designed a royalty system that ‘systematically prevented artists from being paid their royalties.’ UMG for their part denied Durst‘s allegations, claiming to have evidence of previous communications of awaiting payment having been sent to Durst‘s camp.
Durst disputed the limited accounting provided and cited breach of contract, putting in motion his demands to obtain payment for all owed monies, while also requesting full documentation related to accounting for the both band’s and Flawless Records-related royalties.
Upon UMG failing to meet Durst‘s provided 30-day timeline, his legal team indicated that further distribution and sales of Limp Bizkit‘s & Durst‘s UMG-related works would constitute copyright infringement and set out to have the involved recording agreements revoked.
However, this past January, a judge presiding over a hearing on the case sided with UMG, stating 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.”
That decision largely crippled the attempts at establishing copyright infringement against UMG. However, earlier this month, a judge decided against that dismissal, allowing for a change of venue of sorts, with the copyright infringement claims now being allowed to proceed in federal court with a trial by jury planned.
However, that also meant that several of the other claims made in the original complaint would have to be refiled in state court separately. And that leads us up to this morning, where those claims were filed in the Superior Court of the state of California for the county of Los Angeles by Durst, with Limp Bizkit and Flawless Records also listed as plaintiffs.
Among the allegations leveled in that amended complaint are various claims of shady business practices, and payment arrangements not being honored in relation to the band’s recorded works, as well as Durst‘s involvement with the Flawless Records venture.
Durst disputes the accounting of a payment arrangement he claims to have had with Flip Records, etc., as well as his arrangement and compensation for bands he claims to have helped sign to the label, including Staind and more. Durst further claimed to have never received compensation for his work directing thirteen of Limp Bizkit‘s music videos.
His complaints of manipulation and fraud further extend to his fractured relationship with Flip Records founder Jordan Schur, who would go on to bring the Flip Records stable to the UMG umbrella via Interscope Records.
Ultimately, the newly filed complaint is seeking the rescission of Limp Bizkit‘s Flip Records, etc. deals, as well as Durst‘s Flawless Records, deal, while also putting forth allegations of breach of contract and breach of covenant of good faith and fair dealing in relation to the aforementioned recording contracts.
Also alleged by Durst and co., are claims of breach of fiduciary duty, fraudulent concealment, intentional misrepresentation, negligent misrepresentation and promissory fraud. Furthermore, demands for access to the complete accounting associated to the works of Limp Bizkit and the Flawless Records‘ stable are being sought. Durst and co. are also alleging a specific violation of the California Business and Professions Code.
A jury trial is being demanded on these newly refiled claims, with general damages of at least $23,450,000 being sought, with special damages in excess of at least $10,000,000 further being sought.
Durst and co. are also still seeking a rescission of their overall recording agreement, their Flip Records agreement, and the Flawless Records agreement, as well as having their attorney’s fees and costs covered.
