Lil Durk is currently facing a fraud lawsuit from a startup company, Exceed Talent Capital, which alleges that he sold them the rights to a song, “Bedtime,” owned by his record label, Alamo Records.

The lawsuit, filed on December 6 in the United States District Court Southern District of New York, claims that Exceed Talent Capital paid Lil Durk $450,000 as part of their agreed-upon $600,000 for the song rights in August 2022. However, in May 2023, they received a letter from Lil Durk’s record label, Alamo Records, asserting exclusive ownership of the song.

The lawsuit states, “As a direct and proximate result of defendants’ aforesaid contractual breaches, Exceed has sustained, and continues to suffer, significant foreseeable losses including, without limitation, the $450,000 that Exceed paid to the OTF/TTPMG Parties under the Agreement, no portion of which has been returned to Exceed despite its repeated demand therefor.”

Exceed Talent Capital believes that the breach of contract entitles them to over $12 million in damages and is requesting a jury trial. XXL has reached out to Lil Durk’s team for a comment.

This legal action follows reports that Kanye West has been attempting to buy Lil Durk out of his record contract, as the rapper expressed interest in freeing Durk from his contractual obligations with Alamo Records. This move by Kanye West came after the label refused to clear Lil Durk’s verse on Kanye’s new single, “Vultures.”