Megan Thee Stallion has resolved her three-year legal battle with 1501 Certified Entertainment, her former record label, as announced on October 19, 2023[1]. The rapper and the label have reached a confidential settlement and will part ways amicably. Megan had originally filed a lawsuit against the label in 2020, accusing it of fraud, breach of contract, negligent misrepresentation, and more. She alleged that her contract with the label was “unconscionable” and signed when she was 20 years old with little industry experience.
In the lawsuit, Megan claimed that the label was preventing her from releasing music, which led to a temporary restraining order in 2020. The deal she signed with 1501 gave the label a 60 percent cut of her recording revenue, along with 30 percent of her touring and merchandise[1]. However, Megan argued that the contract was not favorable for her and that she only learned about its nature after signing with Roc Nation.
In 2021, Megan accused the label of refusing to allow her to fulfill the terms of her contract, alleging that her album Something for Thee Hotties did not meet the legal definition of an “album”[1]. 1501 countersued Megan, claiming that she was in breach of contract and insisting that Something for Thee Hotties was not a legitimate album.
Despite the legal dispute, Megan announced on Instagram that her next album would be a self-released project, indicating that the settlement had been reached. The label, founded by retired MLB All-Star Carl Crawford, signed the rapper in 2018 and remains her most successful artist. Other performers signed to 1501 include Baby Joker, D-Raww, and Erica Banks[1].
The settlement marks the end of a long legal battle between Megan and her former label, allowing her to move forward with her career independently.