Young Thug has been hit with a lawsuit from AEG, following accusations of wrongfully accepting a hefty $16 million. As reported by AllHipHop, the Atlanta rapper is being sued for allegedly netting a publishing deal in 2021 with Kobalt Music. However, AEG contends that by then, they already secured control of the copyrights mentioned in the agreement.
Furthermore, the conglomerate contends that the copyrights for over 400 compositions sold were meant to be collateral for a loan they gave the rapper and his label, YSL, in 2017. The loan had yet to be paid, despite Thug promising to pay it back with interest, and it was in exchange for exclusive global rights to support his live performances.
Here's all we know about Young Thug's legal woes
As reported by AllHipHop, the rapper, whose legal name is Jeffery Williams, allegedly defaulted on the loan in 2019, and left AEG with an outstanding balance of about $5 million. They also contend that they were left blindsided and that initially, they were misled about Thug's financial standing when it came to repaying the loan.
Reportedly, AEG is seeking the $5.25 million, complete with interest, as well as everything the rapper pocketed from the publishing sale. Notably, this isn't the first time they pressed charges, as in August 2022, they accused him of breaching a contract and sued him for a whopping $6 million.
Allegedly, AEG contended, “even with the rights to Thug’s concerts, he continued booking shows on the side for hundreds of thousands of dollars in performance fees.” However, the rapper's arrest that year relating to the YSL RICO indictment, as well as the consequent trial, hampered AEG's initiatives.
According to HipHopDx, AEG lawyer Kathleen Jorrie said:
"Despite having granted AEG the exclusive right to promote Mr. Williams’ concert performances under the terms of the 2017 Artist Agreement, YSL and Mr. Williams immediately failed and refused to honor their respective obligations under the 2017 Artist Agreement by, among other things, disregarding AEG’s rights, performing concerts without AEG’s involvement, and retaining all proceeds generated therefrom."
Young Thug joined forces with Kobalt Music in 2021, and the latter was then put in charge of publishing all of his work post-April 2021. Kobalt Music’s VP of creative, Jill Tschogl, said about the rapper at the time:
"Young Thug’s track record for impacting the modern sound of hip-hop, trap and popular music is undeniable. He is not only one of the most influential songwriters and artists in rap today, but a cultural icon. It’s an honor to work closely with Young Thug and his team. We look forward to supporting his incredible talent and artistry.”
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Young Thug has yet to respond to AEG's allegations. On a separate note, last month, he pleaded guilty to charges relating to his involvement in a criminal street gang, violation of Georgia's Controlled Substance Act, and several gun crimes.
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