Megan Thee Stallion has reached a confidential settlement to bring an end to the protracted legal battle with her former record label, 1501 Certified Entertainment. The litigation, spanning over three years, revolved around a record deal that Megan described as “unconscionable.” On Thursday, attorneys representing 1501 officially announced that both parties had reached a resolution and would “amicably part ways.”
In a joint statement, it was expressed that:
“Both Megan and 1501 are pleased to put this matter behind them and move forward with the next chapter of their respective businesses,” 1501 said. In the same statement, the label’s president Carl Crawford said that he and his company “wish Megan the very best in her life and career.”
Carl Crawford, the president of 1501, conveyed his well-wishes for Megan’s future in both her life and her career.
While the specific terms of the settlement, including any financial agreements, were not disclosed, this development may trigger a competitive pursuit to sign a new record deal with Megan. The artist, who gained immense popularity in 2019 with her viral hit “Hot Girl Summer,” has twice secured the top spot on the Hot 100 chart with “Savage” in 2020 and as a featured artist on Cardi B’s “WAP” later that year.
Megan, born Megan Pete, had been embroiled in a legal dispute with 1501 for more than three years, asserting that she had been deceived into signing an unfair record deal in 2018 that fell far below industry standards. Her affiliation with Jay-Z’s Roc Nation in 2019 led to the discovery that the deal was “crazy,” thanks to the guidance of “real lawyers.”
The primary dispute expanded to include additional litigation. In February 2022, Megan filed a case against 1501, alleging that the label was unwilling to classify her 2021 project, “Something for Thee Hotties,” as an “album.” This classification was pivotal, as her record deal required her to produce three albums. In response, 1501 countersued, arguing that the project contained only 29 minutes of original material.
In August 2022, Megan filed another complaint, seeking over $1 million in damages, alleging that 1501 had systematically failed to provide adequate royalties and had wrongly permitted excessive marketing and promotion expenses. Once again, 1501 countered, describing the damages claim as “baseless” and asserting that Megan herself owed “millions of dollars.”
A judge ruled in December that the case should be decided through a jury trial, but the proceedings were repeatedly postponed as the parties continued their legal disputes, such as debates over whether Desiree Perez, CEO of Roc Nation, would be required to testify. In April, Megan leveled new allegations, claiming that 1501 had emptied its bank accounts to evade impending damages.
Last week, Megan hinted at an impending settlement during an Instagram live stream, stating, “I have no label right now.” This resolution marks the end of a long and complex legal battle for the artist.