Limp Bizkit VS UMG: new claims have been filed

On March 24, there were some significant developments in Fred Durst’s case against Universal Music Group connected to Limp Bizkit. Durst filed a $200 million complaint against Universal Music Group in October of last year, accusing the label of copyright infringement, false concealment, breach of contract, and other offenses. Royalties for Durst’s time with that label, both as the frontman of Limp Bizkit and as the head of the Flawless Records subsidiary, which signed artists like Puddle Of Mudd and others in the early 2000s, are at the center of the argument.

According to Durst, the label has informed him and his fellow Limp Bizkit members on multiple occasions over the years that they have not yet received any recording royalties from UMG since they have not yet recovered the $43 million in advances given to the band, even though 45 million albums have been sold. Dissatisfied with the accounting, Durst brought in new financial counsel last year. According to their investigation, they found $2.3 million to Durst’s Flawless Records label and $1.03 million in royalties that were due to the band.

The disagreement starts at this point because Durst says he was not informed that UMG had money ready for him and the band. He even went so far as to say that UMG told him that a “software error” was the reason he hadn’t been notified in advance of the monies that were waiting for him. But according to Durst’s initial lawsuit, UMG had deliberately created a royalty system that “systematically prevented artists from being paid their royalties,” suggesting that there were more sinister forces at play. For their part, UMG refuted Durst’s claims, asserting that they had proof that Durst’s team had previously received messages stating that payment was pending.

Durst contested the inadequate accounting and claimed breach of contract, launching his requests to collect all money owed and complete the accounting for royalties connected to Flawless Records and the band separately. His legal team stated that additional distribution and sales of Limp Bizkit‘s and Durst’s UMG-related works would be considered copyright infringement and sought to have the linked recording agreements annulled when UMG failed to fulfill Durst’s given 30-day deadline.

The plaintiffs have not, however, “plausibly alleged the type of’substantial’ or ‘total failure’ in the performance of the contracts that could support rescission of the parties’ agreements,” according to a judge who presided over a hearing on the matter in January of this year. The attempts to prove copyright infringement against UMG were essentially destroyed by that ruling. However, a judge overturned that rejection earlier this month, allowing for a sort of venue change. The copyright infringement charges can now proceed in federal court, with a jury trial scheduled.

That also implied that a number of the other allegations in the initial case would need to be individually refiled in state court. And that brings us to this morning, when Durst filed those allegations with Limp Bizkit and Flawless Records as plaintiffs in the Superior Court of the state of California for the county of Los Angeles. Various accusations of dubious business activities, non-fulfillment of payment agreements pertaining to the band’s recorded works, and Durst’s connection with the Flawless Records enterprise are among the accusations made in that updated lawsuit.

Durst challenges his agreement and compensation for bands he claims to have assisted in signing to the label, such as Staind, as well as the accounting of a financial arrangement he claims to have had with Flip Records, etc. In addition, Durst asserted that he was never paid for directing thirteen of Limp Bizkit‘s music videos. His strained relationship with Jordan Schur, the founder of Flip Records, who later brought the Flip Records stable under the UMG banner through Interscope Records, is another example of his accusations of fraud and manipulation.

In the end, the recently filed complaint aims to revoke the agreements with Flip Records, Limp Bizkit, and Durst’s Flawless Records. It also makes claims of contract violations and violations of the covenant of good faith and fair dealing concerning the recording contracts in question. Durst and co. further allege promissory fraud, deliberate misrepresentation, fraudulent concealment, breach of fiduciary responsibility, and negligent misrepresentation. Additionally, requests are being made for access to the full accounting related to the stable of Flawless Records and Limp Bizkit‘s works. Additionally, a specific breach of the California Business and Professions Code is alleged by Durst and co.

On these recently refiled claims, a jury trial is being demanded, with a minimum of $23,450,000 in general damages and a minimum of $10,000,000 in special damages. In addition, Durst and company are still requesting that their attorney’s fees and costs be paid, as well as the revocation of their whole recording agreement, Flip Records agreement, and Flawless Records agreement.