Chicago rapper Lil Durk is now facing a $12 million lawsuit, accusing him of committing fraud by selling the rights to the same song in two separate business transactions.

The lawsuit, filed by Exceed Talent Capital in New York last Wednesday (Dec. 6), revolves around the company’s acquisition of Durk’s song “Bedtime” featuring Doodie Lo. Durk, who announced his partnership with Exceed in October 2022, had an existing exclusive contract with Sony Music Entertainment’s Alamo Records, signed in 2018. In May 2023, Alamo informed Exceed that the company had no rights to assign revenue from “Bedtime” to third parties due to their prior agreement.

Exceed, which reportedly bought the rights to “Bedtime” for $600,000, was subsequently cоmpelled to return all third-party investments related to the song. This action, as stated in the lawsuit, damaged the startup’s reputation among investors and affected its standing in the tech world.

According to Exceed, Lil Durk has already received $450,000 of the agreed $600,000 before the discovery. The failed deal has allegedly caused the company around $12 million in damages. Other defendants named in the lawsuit include Durk’s manager Andrew “Dilla” Bonsu, Only The Family Entertainment, Inc., OTF Label, and the firm TTPMG.

In 2022, Lil Durk boasted about receiving $40 million from Alamo Records after the company was acquired by Sony Music Entertainment the previous year. The ongoing lawsuit adds a layer of legal complexity to the rapper’s business dealings.