Limp Bizkit Accuses Universal Music Group of Withholding Millions in Royalties

 

One of the world’s biggest music companies, Universal Music Group (UMG), is facing allegations from the 90s nu-metal band Limp Bizkit of withholding significant royalties. Fred Durst, the band's frontman, along with Limp Bizkit and their label, Flawless Records, claim that UMG owes them more than $200 million. The accusations stem from a lawsuit filed in California, where the band accuses the company of using software specifically designed to conceal royalty payments.

The lawsuit alleges that UMG has not paid the band "a single cent" in royalties despite a resurgence in Limp Bizkit's popularity. Their music has been streamed hundreds of millions of times in 2024 alone, yet they claim they saw no payment until after taking legal action. The lawsuit suggests that potentially hundreds of other artists might also be affected, with Durst's attorneys asserting that pre-trial discovery will likely reveal widespread fraud.

UMG, which manages a vast roster of artists including Taylor Swift, Dr. Dre, and Neil Diamond, has not responded to requests for comment. The company is being accused of intentionally hiding royalties through its internal systems, allowing them to keep profits from the band’s music.

Music industry insiders, like consultant Jay Gilbert, believe the issue may stem from accounting errors rather than a deliberate scheme. Gilbert expressed skepticism about the lawsuit, describing it as a potential overreaction: “It sounded pretty damning, but it could be a simple accounting issue that’s blown up.”

Mark Tavern, a former UMG executive, also weighed in, calling the lawsuit "the nuclear option" and suggesting that it was likely filed to push for a quick settlement. He downplayed the severity of the allegations, attributing the problem to either incompetence or bureaucratic delays.

The lawsuit outlines how UMG claimed Limp Bizkit had not yet recouped their advances, which totaled $43 million over the years. However, when Durst's team accessed UMG’s royalty portal in April, they found a balance showing over $1 million owed. In August, UMG reportedly paid $1 million to Limp Bizkit and $2.3 million to Flawless Records, blaming the delay on software issues.

Industry experts say such royalty disputes are common, but they rarely go public. Gilbert noted that these disagreements are typically resolved privately through audits, away from the public eye. However, the rise of streaming has complicated how royalties are calculated, leading to more confusion and frustration among artists.

Despite these challenges, Limp Bizkit's popularity has grown since 2017, with the band selling out arenas and headlining festivals. Record labels have recognized the value of "heritage" acts like Limp Bizkit, and UMG had even sought Durst's approval to reissue the band’s albums on vinyl last year, which Durst reportedly saw as a "money grab."

Durst, Limp Bizkit, and Flawless Records are now seeking a jury trial to resolve the matter. Although some believe the case will be settled quietly, the lawsuit has already caused significant ripples in the music industry. Tavern observed, “Everyone is talking about it,” as the complexities of calculating royalties in the streaming era have led to growing suspicion of industry practices.

Gilbert, however, remained optimistic, predicting that the dispute will be resolved behind closed doors: “Cooler heads will prevail.”