Megan Thee Stallion accuses record label of draining cash to avoid paying her

American rapper Megan Jovon Ruth Pete, known professionally as Megan Thee Stallion has accused her record label 1501 Certified Entertainment of trying to dodge paying her if she wins the legal battle between them.

According to the rapper’s lawyers, the directors of the label she is signed onto currently have gone against their finance director’s advice to keep the contested funds in the primary bank account of the label. They said, the directors have been siphoning fans from the account and have left under $10,000 in the account.

Per Megan’s lawyers, “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. Based on 1501’s undercapitalization, it is highly probable that 1501 will be judgment-proof by the time Pete is able to obtain a final judgment on the merits of her claims.”

However, the attorneys for 1501 Certified Entertainment have denied the claims arguing that there is no “substance” in Megan Thee Stallion’s latest filings. They said the accusations are unmeritorious and 1501 will emerge good.

 “1501 strongly disagrees with the substance of Ms Pete’s recent filings. The allegations are without merit and we are confident that 1501 will prevail on these motions and ultimately recover the substantial money that Ms. Pete owes 1501,” Music News reported.

Megan Thee Stallion and her label 1501 Certified Entertainment have been in a legal tussle for over two years now. The rapper wants her royalties from the company and also wants to be released from her contract with the company.

She joined the Houston, Texas-based label in 2018 as the first female artist to be signed under the label. 1501 is owned by Carl Crawford and managed by T. Farris.