Chicago rapper Lil Durk is facing legal troubles as Exceed Talent Capital, a startup, has filed a lawsuit against him, alleging “fraud” in relation to song rights, Hotnewhiphop reports. The startup claims that Lil Durk committed fraud by granting rights to the same song to two different companies, causing over $12 million in damages. The lawsuit asserts that Lil Durk had entered into an agreement with Alamo Records long before his association with Exceed, making the assertions and guarantees in the contract with Exceed false.

According to court documents, Exceed purchased the rights to Smurkio's song for $600,000 under the expectation of a “fractional investment” scheme. This investment model allows ongoing royalties to be sold in small portions, akin to a stock system. However, Exceed alleges that Durk had already sold the rights to the song “Bedtime” to Sony Alamo for $450,000, and Exceed was unaware of this sale until receiving a cease-and-desist from the record label in May.

Exceed further claims that they had to clear the sale with the Securities and Exchange Commission (SEC) before offering the deal to Lil Durk. The cancellation of the sale resulted in significant penalties for Exceed. The lawsuit filed by Exceed Talent Capital seeks redress against Lil Durk for alleged fraud and breaches of their Music Revenue Rights Agreement.

The legal battle adds a layer of complexity to Lil Durk's career, as he faces accusations of double-dipping in the sale of song rights, leading to financial damages for the startup. Let's hope he can get out of this clean.