Limp Bizkit's Lawsuit Against Universal Music Group for Alleged $200 Million Royalty Concealment Sparks Industry Controversy

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13/10/2024 21h43

**Limp Bizkit Sues Universal Music Group Over Alleged $200M Royalty Concealment**

Limp Bizkit, the iconic nu-metal band, has filed a lawsuit against Universal Music Group (UMG), alleging the music giant owes them over $200 million in unpaid royalties. Founded by Fred Durst, the band claims in the California federal court filing that UMG fraudulently concealed royalties, potentially affecting "hundreds" of other artists as well.

Attorneys for Durst, Limp Bizkit, and their label, Flawless Records, argue that UMG employed software designed specifically to hide royalties from artists. UMG, which boasts a roster including Taylor Swift, Neil Diamond, Dr Dre, and Renee Rapp, declined to comment despite numerous requests.

Limp Bizkit contends that they had not received any royalty payments from UMG until they initiated legal action. The band argues that despite their significant resurgence in popularity—with songs streamed hundreds of millions of times in 2024 alone—they have been denied rightful earnings. They claim they discovered these discrepancies after finally accessing UMG's royalty portal in April.

In August, UMG made payments of just over $1 million to Limp Bizkit and $2.3 million to Flawless Records, citing a software error for the delay. Nevertheless, the lawsuit suggests that the pre-trial discovery process may unveil similar fraudulent practices affecting countless other artists.

Music industry consultant Jay Gilbert, a former UMG and Warner Music Group executive, casts doubt on the extent of the allegations. “My gut tells me it's more of an accounting issue,” said Gilbert, suggesting the complexities of dealing with such extensive payments might be to blame. Similarly, Mark Tavern, an ex-UMG and Sony Music executive, suggested the lawsuit might be a strategic move to expedite a settlement.

Durst highlights the resurgence of Limp Bizkit's popularity starting around 2017, despite a "quiet period" in the early 2010s. The band has been selling out arenas and headlining festivals, fueled by a pop-punk revival among contemporary fans. Despite this, Durst alleges UMG sought his involvement primarily for monetary gain, asking him to approve reissues of the band's earlier albums.

This legal battle has sparked broader conversations about the complexities of calculating music royalties in the era of streaming. With industry stakeholders watching closely, it remains to be seen how this high-profile case will be resolved.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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