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Megan Thee Stallion is asking a court to appoint a third-party manager to oversee the funds of her label, 1501 Certified Entertainment, after accusing its management of siphoning her money and not paying her, according to documents obtained by TMZ.
In a Wednesday, April 13 brief, Megan’s legal team directly called out the label’s CEO, retired MLB player Carl Crawford, for mismanaging funds, claiming its primary bank account contains less than $10,000, despite all five albums she’s released with the label debuting in the top 10 on the Billboard 200 charts, with 2020’s Good News going on to sell over a million copies. They’re alleging that Crawford and his fellow 1501 execs J. Prince and Gee Roberson are keeping the rest of the profits for themselves.
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Billboard later confirmed the news, quoting Megan’s lawyers’ brief, which accuses Crawford and Co. of “dissipat[ing] millions of dollars held in 1501’s primary bank account,” including money Megan may be owed. “Instead of following its financial manager’s advice and holding the contested funds in reserve, 1501 has chosen to enrich itself and its consultants, leaving less than ten thousand dollars in the account,” her lawyers continued. “Based on 1501’s undercapitalization, it is highly probable that 1501 will be judgment-proof by the time [Megan] is able to obtain a final judgment on the merits of her claims.”
Last month, TMZ reported that Megan had been granted a restraining order against 1501 that prevented the label from blocking the release of a single she was planning to drop the following day. That track has yet to arrive.
The FADER has reached out to representatives of Megan Thee Stallion and 1501 Certified Entertainment for independent confirmation and further comment.
