G Herbo Sues Former Manager and Indie Label for $40 Million Due to Unfair Deals
G Herbo has filed a lawsuit against his former manager and label Machine Entertainment Group. The rapper claims he's owed $40 million as a result of unfair deals.
G Herbo Sues Former Manager and Indie Label for $40 Million
According to court documents obtained by XXL, Herbo filed the lawsuit on Oct. 25. In the lawsuit, Herbo, real name Herbert Randall Wright III, is accusing his former manager, Joseph Bowden, and Machine Entertainment Group of "unfair" and "one-sided" dealings.
"Bowden's company Machine entered into unfair and one-sided deals with Wright to obtain his copyrights and other valuable rights," the documents read. "Bowden ensured that Wright would have no access to the millions of dollars that Wright had rightfully earned, and instead that Wright would be dependent upon Bowden to make even basic purchases for him."
The suit continued, "Through this scheme, Bowden planned to keep Wright forever indebted to Defendants...unable to terminate the contracts which gave Wright's valuable copyrights and other rights to Defendants."
Additionally, Herbo specifically criticized a financial report provided by Machine, which claimed Herbo owed them a "recoupable balance of $8.4 million."
Herbo disputes this number, and in the suit noted years of financial mismanagement and the lack of accounting transparency. Herbo additionally writes that he actually signed a Release Agreement on Aug. 25 to nullify his business dealings with Machine, but that neither Bowden nor the label would honor it.
The Chicago rapper has sued Bowden and Machine for $20 million as a result of suffering damages and another $20 million for material breaches, for a total of $40 million. He is also demanding full ownership of his music. Additionally, G Herbo wants the Release Agreement to be honored.
G Herbo's latest project, Strictly 4 My Fans 2, dropped on April 28, and was released under Machine Entertainment Group/150 Dream Team.
XXL has reached out to G Herbo's team for comment.
G Herbo Pleads Guilty in Credit Card Fraud Case
The new lawsuit is just the latest legal battle G Herbo has faced in recent months. On July 28, G Herbo pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to federal officials in relation to his $1.5 million credit card fraud case.
According to the Department of Justice, Herbo admitted during his plea deal that he personally stole $139,878 from his victims. Herbo will now have to pay back the money he admitted to stealing, according to the Chicago Tribune.