Taylor Gang leader Wiz Khalifa‘s ex-label Rostrum Records has reportedly countersued him for $2 million over owed money.
According to reports, Wiz did not live up to his end of their contact which included owed music royalties.
Rostrum Records — founded by Benjy Grinberg — claims in a new lawsuit it had a deal with Wiz for a 15% cut of touring and music royalties when the rapper started back in 2005. The company says it’s also owed 20% of any merch sales. The company claims Wiz has earned a ton of money in touring, merchandise and music sales recently and Rostrum wants $2 mil to make things right. (TMZ)
In a statement this week, Wiz’s ex-manager Benjy Grinberg stood behind his record company and fired back at Khalifa’s initial lawsuit.
“Thirteen years ago, we started Rostrum Records as a label that would support and nurture the artists we believe in. We are very grateful that Rostrum has been able to achieve that goal and provide a strong, family atmosphere where meaningful relationships with the artists is our top priority. To give everything you have to an artist and then be on the receiving end of a fabricated lawsuit is deeply disappointing. What was alleged is, in fact, the complete opposite of our actions and the antithesis of what Rostrum Records and I stand for. Rostrum looks forward to quickly addressing these baseless claims so we can continue to focus our energies on our artists’ success.” (Billboard)
Last month, reports surfaced and revealed Khalifa wanted at least $1 million for a deceptive 360-deal and self dealing transactions during their 10-year run together.
The lawsuit notes that Grinberg began representing Khalifa in 2004, when the recording artist was just 16. His lawsuit contends that Grinberg and his label “induced” him to enter into a “360 agreement,” which provided that Khalifa would be exclusive to Rostrum and Rostrum would share in his income streams as a songwriter and touring a merchandising. The lawsuit contends that with that contract and a series of amendments, Grinberg failed to disclose alternative arrangements that could be more beneficial to him, and instead tied him to an agreement that “reached for more than a decade into virtually every aspect” of his professional life. (Variety)
In 2014, rapper Mac Miller also parted ways with Rostrum Records.
“I’m trying to not let [the deal] factor in. I’ve held on and been independent and done my own thing long enough that they trust me and are going to let me make what I want to make. I think that the second I let that affect the creation, it’s horrible.” (The FADER)