UMG under fire for unpaid royalty disputes, contractual misconduct

Universal Music Group (UMG), one of the world’s largest record labels, is under fire as a growing number of high-profile artists, including Drake, Limp Bizkit, and Iggy Azalea, publicly accuse the company of royalty disputes and contractual misconduct.

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Universal Music Group (UMG), one of the world’s largest record labels, is under fire as a growing number of high-profile artists, including Drake, Limp Bizkit, and Iggy Azalea, publicly accuse the company of royalty disputes and contractual misconduct.

According to BusinessDay, these cases, unfolding as of March 26, 2025, spotlight long-standing tensions between artists and the music industry giant, raising questions about transparency and fairness in how UMG handles its talent.

Drake, the chart-topping rapper, has taken legal action against UMG, alleging the label artificially boosted Kendrick Lamar’s diss track “Not Like Us” to damage his reputation during contract negotiations. In a defamation lawsuit filed late last year, Drake claims UMG fired employees loyal to him and paid influencers to promote the track without disclosure, undermining his brand. He seeks damages for what he calls “illegal” manipulation, adding fuel to an already heated rivalry with Lamar.

Meanwhile, nu-metal icons Limp Bizkit are pursuing a $200 million lawsuit against UMG, claiming the label owes them millions in unpaid royalties. The band filed a lawsuit on Monday, March 24, in the Superior Court in Los Angeles County, alleging breach of contract, fraudulent concealment, breach of fiduciary duty, intentional misrepresentation, and promissory fraud on the part of UMG, among other allegations.

The band’s complaint asks the court to declare that the contracts between the band and UMG are no longer valid, and for damages of no less than $23.45 million, plus “special damages” of at least $10 million.

Frontman Fred Durst alleges that UMG’s royalty software is deliberately designed to conceal earnings, keeping artists in the dark about their profits. The band’s case, which has progressed in federal court after a judge denied UMG’s motion to dismiss copyright claims, also accuses the label of colluding with Flip Records to siphon profits. Durst asserts this systemic issue could affect “hundreds” of other artists.

Iggy Azalea has joined the fray, taking to X to blast UMG for allegedly withholding millions in international royalties. The Australian rapper claims she’s never received a dime for sales outside the U.S., estimating the owed amount in the eight-figure range.

The Australian rapper, known for her 2014 smash hit ‘Fancy,’ said, “Crazy how in my entire career I was never paid a single royalty by Universal Music for anything outside of the USA. They owe me millions of dollars in back pay, which they technically stole from me, as per my contract I am due payment. The amount owed is in the 8-figure range,” the rapper wrote.

After rejecting a “laughable” $18,000 settlement offer, Azalea vows to take UMG to court, calling them “criminals” who exploit artists unable to fight back financially.

These disputes echo past conflicts with UMG, including Courtney Love’s 2002 settlement over underpaid royalties and Angie Stone’s recent 2024 claims of similar issues. As the list of aggrieved artists grows, UMG’s silence on Azalea’s accusations and defensive stance in the Drake and Limp Bizkit cases suggests a contentious road ahead.