Megan Thee Stallion has finally settled her three-year legal battle with 1501 Entertainment and will amicably part ways the Houston label, having mutually reached an undisclosed settlement.
Megan Thee Stallion and her former label 1501 Entertainment have officially resolved their three-year legal battle, reportedly having “mutually reached a confidential settlement to resolve their legal differences.” Megan hinted at her new status as an independent artist last week on Instagram, having “amicably” parted ways with 1501 following the lawsuit she initially filed in 2020.
“I have no label right now and we’re doing everything funded straight out of Megan Thee Stallion’s pocket, so the budget is coming from me,” said the rapper. “I’m so excited to be doing something for the first time independent since it was just me and my momma. It’s really just me until we sign to a new label; I don’t want to sign to a new label right now because I just want to do it myself.”
The initial lawsuit claims that 1501 was preventing Megan, whose legal name is Megan Pete, from releasing music. She accused the label of fraud, breach of contract, and negligent misrepresentation, among other grievances. A judge denied label owner Carl Crawford’s attempts to settle in arbitration in April 2020.
In 2022, Megan sued 1501 a second time, accusing the label of preventing her from fulfilling the terms of her contract by claiming that her 2021 release, Something For Thee Hotties, did not constitute an “album” and thus did not fulfil her contractual recording commitment.
The label counter-sued Megan with claims she was in breach of contract, doubling down on their contention that Something For Thee Hotties did not meet the legal definition of an album. A Texas judge denied the label’s request to have Something For The Hotties declared not an album at the end of last year, and allowed the suit to proceed to trial.