On October 8, the legendary Nu-metal group Limp Bizkit initiated legal proceedings in the Central District of Los Angeles, claiming that Universal Music Group (UMG) owes them at least $200 million in unpaid royalties. The band has leveled accusations against UMG of fraud, breach of contract, breach of fiduciary duty, and misrepresentation.
Limp Bizkit contended that UMG created a software system designed to obscure royalties from artists and systematically prevent payments from being made.
The lawsuit articulated that despite a recent revival in Limp Bizkit’s popularity, the band has not received the royalties owed to them by UMG.
Limp Bizkit claims UMG used royalty software crafted to hide artist payments
The lawsuit elaborated that the Grammy nominee band had gained significant traction in the early 2000s but saw a downturn in the 2010s. Nonetheless, a resurgence occurred between 2017 and 2018, with the band amassing 450 million streams on Spotify alone.
The complaint further indicated that Limp Bizkit was successfully selling out arenas and headlining prominent festivals, despite not releasing any new material since their 2021 album, *Still Sucks*. Over the past year, the band reportedly saw an increase of 68 percent in assets.
Even with this newfound popularity, the band asserted in their lawsuit filed in a California federal court that UMG failed to pay them the royalties due.
Limp Bizkit’s frontman Fred Durst, along with Flawless Records—owned by Durst—has been named as a plaintiff in the suit. UMG claimed that their ongoing investment in royalty reporting systems facilitated detailed royalty breakdowns for their artists.
However, the plaintiffs disputed this assertion, stating:
“The Plaintiffs have uncovered that, contrary to UMG’s claims, the company never intended to pay the Plaintiffs. Instead, it designed and implemented royalty systems meant to obscure royalties from artists (including the Plaintiffs) and to keep those funds for itself.”
Further, the lawsuit stated:
“Upon investigation, the Plaintiffs have found that UMG’s software flaws are systemic, potentially affecting hundreds of other artists who have also seen their royalties wrongfully withheld for years.”
According to the lawsuit, when Fred Durst inquired about missed royalties, UMG responded that he needed to recoup previously granted advances. Nonetheless, when examined by Durst’s management team, they learned that he was owed over $1 million.
The lawsuit claimed Limp Bizkit’s royalties had been payable since 2019 but were fraudulently reclassified as “unrecouped”by UMG to prevent payment.
Even though a royalty statement from one project in the second quarter demonstrated a positive balance, it still showed approximately $200,000 as unrecouped.
A UMG executive referred to the non-payment issue as a “one-off mistake”due to a software malfunction. The band later did receive $1 million in back royalties, while Durst’s Flawless Records was compensated $2.3 million for a first-look agreement dating back to 1999.
An executive explained that the royalties were reflected in the band’s account only recently after UMG purportedly advanced them $43 million, which Limp Bizkit and Fred Durst argue is grossly inflated by around $30 million.
Limp Bizkit and Fred Durst are demanding $20 million in damages, asserting that a full discovery could reveal that the total owed easily exceeds $200 million.
The band plans to sue for fraudulent concealment, breach of contract and fiduciary duty, intentional and negligent misrepresentation, promissory fraud, copyright infringement, among other claims.
According to Limp Bizkit, they ended their contract with UMG as of September 30 due to these allegations but claim UMG continues to profit from their music.
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