Billboard reports that Exceed Talent Capital claims the “All My Life” rapper, whose real name is Durk Derrick Banks, inked a $600,000 recording royalties deal with the company for his record “Bedtime” while he was simultaneously in another exclusive deal with Sony’s Alamo Records. Exceed Talent Capital detailed that it found out about the previous deal with Alamo, which began in 2021, after being hit with a cease-and-desist order from the record company.
The startup’s goal behind securing the recording rights to the track had been to turn it into a fractional investment vehicle that “would allow investors to buy the right to receive ongoing royalties to the song,” per the outlet.
“Despite defendants’ unambiguous contractual representations and warranties regarding their rights in the Banks recording, Exceed has now learned that Banks previously had assigned to a third party the exact same rights,” Exceed Talent Capital’s lawyers wrote in a filed complaint in Manhattan, NY, federal court on Dec. 6, 2023, according to Billboard.
“As defendants have failed and refused to acknowledge any responsibility for their intentional misrepresentations and material contractual breaches, let alone take action to rectify the same, Exceed was compelled to bring the present action to obtain legal redress,” the complaint continued.
The fintech firm alleges that Lil Durk working with Alamo Records without its knowledge has resulted in over $12 million in damages and “significant time, effort and financial resources” gone down the drain, according to the outlet. In addition, it has been seeking a resolution from Lil Durk’s end or a refund of $450,000, but has been “utterly ignored.”
“Exceed was compelled … to return the funds that had been invested by third parties in the Offering, further significantly damaging Exceed’s reputation and relationships with its partners and investors,” Exceed Talent Capital wrote.
