A company that provided marketing services for Wiz Khalifa’s album Deal or No Deal has sued Babygrande Records for unpaid royalties.
Malbon Brothers Farms filed a lawsuit against Babygrande Records on December 7, in the Supreme Court of the State of New York.
The lawsuit claims that Babygrande was required to pay Malbon Brothers Farms 20% of all the net profits resulting from the commercial release of album Wiz’ Deal or No Deal.
In exchange for the 20%, Malbon Brothers Farms provided marketing services to promote the album.
According to the lawsuit, the Deal or No Deal album has sold well over 100,000 copies since its original release date.
Malbon Brothers Farms claims that Babygrande paid just $8701.73, claiming it represented the 20% that was due to Malbon Brothers Farms.
When Malbon Brothers Farms contacted Babygrande Records’ CEO Chuck Wilson, Wilson claimed that he “cross-collateralized” expenses related to the album, by adding Babygrande’s marketing, manufacturing distribution and selling fees.
The lawsuit accuses Babygrande Records of reducing Malbon Brothers Farms 20% for the Deal or No Deal album by adding the unnecessary expenses.
Malbon Brothers Farms claims the breach of contract has caused them at least $200,000 in damages, in addition to the 20% still due from any net profits derived from the Deal or No Deal album.
Check out a copy of the lawsuit here.