Limp Bizkit sues Universal Music Group for $200 million, alleging years of unpaid royalties

From left, Limp Bizkit's Wes Borland, DJ Lethal, Fred Durst, John Otto and Sam Rivers. (Paul Natkin/Getty Images)

Limp Bizkit is fighting for unpaid royalties. 

In a lawsuit filed on Tuesday in Los Angeles, the nu metal band accused Universal Music Group of withholding money from them. The group worked with the music label from 1997 to 2011, releasing their first six albums in partnership with them; however, lead singer Fred Durst's lawyer claims the band has "not seen a dime in royalties" in a number of years.

Durst and his fellow bandmates alleged in the complaint that UMG has "fraudulent" policies in place which are "deliberately designed" to allow them to withhold royalties from artists who have signed with them, per the court documents obtained by FOX Business. They are seeking $200 million from the company.

"UMG’s creation of such a system, while holding itself out as a company that prides itself on investing in and protecting its artists, makes plaintiffs’ discovery of UMG’s scheme all the more appalling and unsettling," the band alleges.

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The group released their first six albums through Interscope Records, a sub-label of UMG, including "Three Dollar Bill, Y'all," "The Unquestionable Truth (Part 1)," "Results May Vary" and "Gold Cobra," as well as a few compilation albums.

Their second album, "Significant Other," launched the band into a different level of stardom, reaching No. 1 on the Billboard 200 and selling over 16 million copies. Over the course of their career, Limp Bizkit has been nominated for three Grammy Awards and sold over 40 million records across the globe.

A decade after releasing their album "Gold Cobra," the group released their seventh studio album, "Still Sucks," in October 2021.

Despite their success as a band, Durst was allegedly informed in April by UMG that the group had not been receiving royalties because their account was considered "unrecouped," meaning an artist has not made enough money to pay back their advance.

Durst was notified in April that Limp Bizkit hadnt been receiving royalties because they were considered "unrecouped." (Jim Dyson/Getty Images)

In the complaint, Durst claims UMG repeatedly reached out to him to participate in a rerelease of the band's second album for its 25th anniversary, explaining he turned it down because it felt "like a ‘money grab’ that would only benefit UMG."

"The fact that UMG had sought to exploit Limp Bizkit’s assets shows that they knew that they would generate significant revenues due to the band’s newly reignited popularity," the complaint reads. "Thus, UMG knew that, although Limp Bizkit’s assets were generating millions in income for UMG and Flip Records, and could be further exploited to generate even more, that UMG had still never paid Limp Bizkit a cent in royalties on any of those assets."

The lawsuit then points out the alleged financial practices of the company, where the band's accounts were allegedly "overdrafted" without any indication "where the additional charges came from," in a system "intentionally designed to show the Limp Bizkit accounts as all unrecouped," according to the complaint.

Universal Music Group ultimately paid the band $1.03 million and gave an additional $2.3 million to Durst's Flawless Records, but the court documents allege they are owed more money. The band parted ways with Interscope Records in 2011, releasing their seventh album with Suretone Records.

Limp Bizkit alleges there could be more artists who aren't receiving their royalties. (Jeffrey Mayer/WireImage / Getty Images)

In the complaint, the plaintiffs also allege there could be "hundreds of other artists" who have been kept "in the dark about positive balances in their accounts" and thus are not receiving the royalties they deserve.

FOX Business has reached out to UMG and Limp Bizkit for comment.

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