Universal Music Group’s Legal Response
Universal Music Group (UMG) filed a detailed response on December 20, 2024, bolstering its arguments to dismiss a $200 million lawsuit brought by rock band Limp Bizkit and their label Flawless Records over alleged unpaid royalties.
The response, filed in the U.S. District Court for the Central District of California, addresses numerous claims made in the class’s original October 2024 lawsuit.
Having filed a motion to dismiss at the end of November, Universal Music Group now argues that the case should be dismissed on several key grounds.
(You can read UMG’s latest legal response in full here.)
Details of the Lawsuit
Limp Bizkit frontman Fred Durst sued UMG in October, claiming the record company owed him millions of dollars in royalties.
The lawsuit also seeks compensation for other artists who worked with UMG through Durst. Flawless Records and return the copyright to UMG for the works of these artists.
UMG claims the band’s attempt to exit their recording contracts “failed as a matter of law.”
The company further argues that California and New York law require termination of the royalty agreement to require “total default of the contract,” which they say has not occurred given the “millions of dollars in advance payments” paid by the group through August 2024.
UMG also responded to the group’s allegations of fraud, saying that Limp Bizkit does not meet the required legal standards to prove fraud.
According to Limp Bizkit’s complaint, the band sold more than 45 million records since they signed with the California indie band in the 1990s Flip the Records with distribution from UMG Interscope.
In response to the claim for late payment of royalties, UMG noted that the group had access to the company’s royalty portal and retains the right to an audit to verify its payments. Durst representatives previously claimed that when Durst’s team contacted UMG about discovering more 1 million dollars regarding UMG’s database profits pending payment to Durst, UMG admitted this and attributed it to a software error.
While UMG acknowledged that the group was given the right to “examine Interscope’s books and records to determine whether additional royalties are due,” the company most recently noted that “with all this information available, (Limp Bizkit) could not identify a single transaction that would result in the payment of royalties that have not been paid.”
“Simply put, this is not a cause of action,” UMG’s legal team said.
Commenting on the breach of contract claims, UMG says the group’s allegations are largely “speculative” and based on “suspicion.”
UMG further objects to the band’s claims of fiduciary duty, arguing that the relationship between the record label and the band was purely contractual and was not “special” enough.
UMG is also challenging the suit’s venue, arguing that a forum selection clause in the previous agreement required the suit to be litigated in New York rather than California. The company maintains that this clause remains in effect despite the group’s claims that the contract was being terminated.
Limp Bizkit was formed in 1994 in Jacksonville, Florida and signed with Flip and Interscope in 1997, when Interscope was part of the group. MKA predecessor NBCUniversal and Universal Music Group.
The case is currently pending in the U.S. District Court for the Central District of California, with both sides awaiting the court’s decision on a motion to dismiss.
The court’s decision on UMG’s motion could impact how disputes between artists and labels over royalties and contract terminations are resolved in the future. If the case proceeds, it will likely require a detailed examination of decades of royalty payments and accounting practices in the music industry.
Universal Music doubles down on motion to dismiss Limp Bizkit lawsuit
