A federal judge has dealt a significant blow to Limp Bizkit's $200 million lawsuit against Universal Music Group (UMG), ruling that the band cannot void their contracts dating back nearly 30 years over claims of unpaid royalties.
The nu-metal band, led by frontman Fred Durst, filed the lawsuit in Los Angeles federal court last year, alleging they "had not seen a dime in royalties" from UMG. However, Judge Percy Anderson found that the band had received "millions in advances" and that UMG had provided "substantial sums" for recording and distribution of their albums.
"Plaintiffs have not plausibly alleged the type of 'substantial' or 'total failure' in the performance of the contracts that could support rescission of the parties' agreements," Judge Anderson wrote in his ruling.
While the decision doesn't completely dismiss the case, it creates major hurdles for the band's legal strategy. The ruling particularly impacts their copyright infringement claims, which depend on successfully voiding the original contracts to regain ownership rights.
The band's attorneys maintain optimism, noting that the court upheld several of their claims and provided an opportunity to amend rejected portions. "Universal will be held accountable for its actions and will not get away with its conduct at the expense of artists," stated Frank Seddigh, the band's lead attorney.
The lawsuit, filed in October, alleged an "appalling and unsettling" scheme by UMG to conceal royalties through questionable bookkeeping practices. UMG strongly denied these accusations, calling them "fiction" and arguing that the band had received millions in payments.
The band now has until early next month to file an amended version of their lawsuit. If the case loses its federal copyright claims, it may need to be refiled in state court.