The rapper’s immediate concern is that the company’s money is running low, claiming 1501’s primary account has less than $10,000 left in it–even though much more than that was deposited. The exact amount is redacted in the documents, but Megan says it’s in the millions.
As for where all of this money is going, the star claims Crawford, J. Prince and Gee Roberson — who are both involved in running the label — are the only ones getting paid.
“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,” Megan Thee Stallion’s lawyers wrote, according to Billboard. “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.”
As a result of this “fraudulent transfer of assets,” Megan’s lawyers demanded that the judge overseeing the case impose extraordinary restrictions while the case continues to play out.
“[Megan] seeks the appointment of a receiver to take possession of 1501 until this dispute is resolved, or in the alternative, the appointment of a receiver to take possession of all of 1501’s bank accounts and any other bank accounts controlled or owned by Carl Crawford, including the bank accounts to which the money siphoned out of the bank account was transferred into.”
Meg is currently in the process of suing her label for royalties and to be released from her contract. She is filing this motion because her fear is that when there’s finally a judgment in her favor, 1501 won’t have the money to pay her what she’s owed. She is now asking the judge to appoint a third party to take over managing 1501’s finances.
