Universal Music Intensifies Push to Dismiss Limp Bizkit's $200M Royalties Lawsuit, Citing Express Agreement Terms

Universal Music Intensifies Push to Dismiss Limp Bizkit's $200M Royalties Lawsuit, Citing Express Agreement Terms

By Marcus Bennett

December 24, 2024 at 02:31 AM

Universal Music Group (UMG) has strengthened its push to dismiss Limp Bizkit's royalties lawsuit, responding with detailed counterarguments to the band's $200 million claim.

UMG white logo on black background

UMG white logo on black background

Key Points of UMG's Defense:

  • UMG maintains the allegations are "fiction" and any payment issues stemmed from Limp Bizkit's former business manager's misrepresentations
  • The label argues that cross-account recoupments were explicitly allowed in their agreements
  • UMG emphasizes that plaintiffs have failed to identify specific unpaid royalty transactions
  • The company notes that Limp Bizkit has the right to audit Interscope's books under all three agreements

Legal Jurisdiction Issue:

  • The relevant deal includes a New York forum-selection clause
  • UMG argues the California-filed action should be heard in New York courts
  • The validity of contract rescindment must be determined by New York jurisdiction

Background of the Case:

  • Limp Bizkit and Fred Durst filed the lawsuit in October
  • They allege over $200 million in damages from unpaid royalties
  • Claims include "unsubstantiated" recoupment balances and "fraudulent accounting practices"
  • The dispute involves a JV with Durst's Flawless Records and a separate Limp Bizkit deal

Current Status:

  • Both parties have requested an early January hearing on the dismissal
  • Limp Bizkit's representatives continue to challenge UMG's arguments
  • The case (2:24-cv-08630) remains pending while awaiting the dismissal hearing

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