Music Business

Limp Bizkit has filed a lawsuit alleging $200M in unpaid UMG Royalties

Fred Durst of Limp Bizkit has filed a lawsuit alleging $200 million in unpaid royalties from Universal Music Group. It  raises questions about transparency and royalty payments in all major record label contracts.

by Stacy Simons Santos via Celebrity Access

Limp Bizkit frontman Fred Durst has filed a $200 million lawsuit against Universal Music Group (UMG), accusing the label of massive royalty underpayments and fraudulent accounting practices. Durst’s complaint, filed on October 8, claims that UMG owes millions in royalties to both him and artists signed under his Flawless Records label. The sweeping 60-page lawsuit alleges that UMG misrepresented various accounts as “unrecouped” and withheld royalties dating back to the band’s early albums, despite Limp Bizkit’s continued success and streaming numbers.

The lawsuit details Limp Bizkit’s 1996 agreement with Flip Records, which was later amended and replaced by an Interscope deal in 2000. UMG, through its joint venture with Flip Records, was responsible for paying royalties to both the band and Flip. Despite this arrangement, Durst claims he has never received any royalty payments, despite Limp Bizkit having sold over 45 million records globally and expected to reach 793 million streams by the end of 2024.

“the label allegedly reclassified the accounts as “unrecouped” to avoid payments”

Durst’s new legal representatives discovered that contrary to UMG’s claims of unrecouped costs, Limp Bizkit’s royalties were fully recouped in 2019. However, the label allegedly reclassified the accounts as “unrecouped” to avoid payments. After gaining access to UMG’s database in April 2024, Durst’s team found $1.04 million in unpaid royalties and $2.35 million owed to Flawless Records, which had never received profit-sharing revenue from UMG.

Durst and Limp Bizkit finally received the $1.04 million payment in August 2024, marking the first time the band received royalties from UMG. The lawsuit also highlights missing royalty statements dating back to 1997 and inflated recoupment costs, with UMG execs blaming a “software error” and citing $43 million in advances, a figure that Durst’s team disputes, estimating it closer to $13 million.

As a result of these alleged underpayments and mismanagement, Durst and Limp Bizkit are seeking to terminate their contracts with UMG and are demanding compensation for the damages, estimating UMG owes them over $200 million.

This lawsuit comes as Limp Bizkit experiences a resurgence, continuing to sell out shows and amassing millions of streams annually. The band’s early albums, including Significant Other and Chocolate Starfish and Hot Dog Flavored Water, remain highly successful, but the lawsuit underscores the continued tension between artists and major labels over royalties and transparency.

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