Lil Durk sued for $12 million by fintech startup for alleged ‘fraud
Lil Durk, also known as Durk Derrick Banks, is currently entangled in a legal dispute as a fintech firm, Exceed Talent Capital, alleges that he entered into conflicting agreements for the same song rights. The complaint, filed in Manhattan federal court on December 6, accuses Durk of committing “manifest fraud” by agreeing to grant Exceed Talent Capital the recording royalties for his song “Bedtime” while already having an exclusive deal with Sony’s Alamo Records.
Exceed Talent Capital claims that despite Durk’s contractual assurances regarding the song rights, they later discovered that he had already assigned the same rights to a third party. The lawsuit asserts that this move by Lil Durk, who achieved the No. 2 spot on the Hоt 100 with “All My Life” earlier this year, resulted in damages exceeding $12 million for Exceed Talent Capital.
The lawsuit further states, “As defendants have failed and refused to acknowledge any responsibility for their intentional misrepresentations and material contractual breaches, let alone take action to rectify the same, Exceed was cоmpelled to bring the present action to obtain legal redress.”
According to the complaint, Exceed Talent Capital had agreed to pay Lil Durk $600,000 for the recording rights to “Bedtime.” The fintech firm had intended to create a fractional investment vehicle, allowing investors to purchаse the rights to receive ongoing royalties from the song.
In a press release announcing Exceed’s royalties investment product, Lil Durk shared, “Where I’m from, few own anything. As The Voice of the Trenches and for my label OTF, I’m always looking for ways to expand and give back to my people. Exceed makes it possible for my fans to become part of my team and share in our success together.”
However, in May, Exceed received a cease-and-desist letter from Alamo Records, informing them that Lil Durk was bound by an exclusive recording agreement with the label, preventing him from selling his recording royalties to anyone. Exceed demanded that Durk rectify the situation or refund the $450,000 already paid, but their requests were allegedly ignored.
The lawsuit claims that Exceed had to cancel the sale after investing significant time, effort, and financial resources, damaging the company’s reputation and relationships with partners and investors.