When did Limp Bizkit sue Universal Music Group? Judge rules against the band having their contract with the company voided

Popular nu-metal band, Limp Bizkit, filed a lawsuit against the Universal Music Group (UMG) in October 2024. The lawsuit alleged that the music company was involved in questionable accounting practices in paying royalties to the frontman, Fred Durst, and other musicians.

According to the complaint, the band sold over 45 million records since signing with Flip Records which were distributed through UMG’s Interscope. The lawsuit, led by Fred Durst, accused UMG of withholding up to $200 million in royalties.

It also claimed the company intentionally created royalty software and systems to hide payments owed to artists and keep the profits. However, on January 17, 2025, federal Judge Percy Anderson rejected Limp Bizkit’s request to cancel their contract with the company.

The judge ruled that the band did not provide enough evidence to justify canceling the agreement, citing the royalties and advances UMG had already paid. Anderson’s statement reads:

“The alleged failure to pay royalties does not constitute a total failure of performance.”

As a result, related claims, including copyright infringement and declaratory relief, were dismissed. Other claims like breach of contract remained unresolved. Limp Bizkit's attorney, Frank Seddigh, stated that the court allowed them to amend their complaint to continue pursuing the case in federal court.

According to Billboard, the band has until February 3, 2025, to file the revised complaint. If the updated filing doesn’t include a copyright infringement claim, the case will be dismissed from federal court, and the lawsuit will be refiled in a different court.

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What did UMG say about Limp Bizkit’s claims?

UMG argued that Limp Bizkit’s effort to void their recording contracts is legally invalid, claiming there hasn’t been a complete failure in contract performance. The company cited the millions in advance payments made to the band before August 2024 as evidence.

UMG also disputed the band’s fraud allegations, stating they didn’t meet the required legal standards. According to Music Business Worldwide, regarding claims of delayed royalty payments, UMG emphasized that the band had access to their royalty portal and audit rights to verify payments.

Limp Bizkit had previously alleged a difference of over $1 million in unpaid earnings, which UMG attributed to a software error. UMG stated that the band had the right to audit Interscope's records to confirm if additional royalties were owed.

However, the company noted that the band did not identify any specific transaction that would justify unpaid royalties, calling their claim baseless. UMG also argued that the band's breach of contract allegations were speculative and lacked concrete evidence.

Additionally, UMG dismissed the claim of a fiduciary relationship, asserting that their connection with the band is strictly contractual and does not involve a "special" duty.

According to UMG, Limp Bizkit’s 2005 album Greatest Hitz did not produce any royalties for the band due to unrecouped losses as of late 2022. The lawsuit also alleged that UMG neglected to provide royalty statements for the band’s fourth album and their music videos using Master Recordings over extended periods.