With Young Thug Free From Jail, AEG Pushes Ahead With $5M Lawsuit Over Failed Touring Deal
The civil case, which was delayed for years by Thug's criminal trial, claims the rapper owes AEG millions and must potentially fork over the rights to his music to pay down the debt.
staff
Young Thug might be home from jail, but he’s still facing a multi-million dollar legal battle with concert giant AEG over a touring partnership gone sour.
In new legal filings, attorneys for AEG say they’re pushing ahead with a civil lawsuit, first filed way back in 2020, accusing the rapper of violating a touring agreement. AEG says Thug owes more than $5 million under the deal — and that he’s now obligated to hand over some of his music to pay down the debt.
The lawsuit has been delayed by Thug’s years-long criminal drama, in which Atlanta prosecutors accused him of running a violent gang. But after the superstar pleaded guilty and was released from jail last month, AEG now says it wants its money.
“Proceedings in this action have been hampered for more than two years by reason of Mr. Williams’ incarceration,” the company’s lawyers wrote in a Friday’s court filing. “So long as Mr. Williams does not violate the terms of his probation, his criminal proceedings should no longer affect the parties’ ability to complete discovery and motion practice, or to bring the case to trial.”
AEG sued Thug in December 2020, claiming he had breached a 2017 touring agreement that gave the company the exclusive right to promote his concerts. AEG alleged that Thug had “immediately failed and refused to honor” the deal after it had been signed, including by performing shows without the promoter’s involvement and pocketing the proceeds.
Under the terms of the deal, AEG claims Thug was paid a $5.3 million advance – a sum the company says was never paid back after he breached his deal. More significantly, AEG says that debt was secured with Thug’s copyrights to his songs as collateral – and that AEG can now claim an interest in the revenue generated by such intellectual property.
“Such copyrights constituted collateral that was subject to the security agreement,” the company wrote in its 2020 complaint. “AEG has the right, pursuant to [agreement], to require that [Thug’s publishing company] and Mr. Williams assemble such [copyrights] and turn them over to AEG.”
After nearly four years, such a case would typically have resulted in a trial or a settlement by now. But the lawsuit against Thug was put on indefinite hold in May 2022, when the rapper was arrested and charged in a sweeping racketeering indictment that claimed his YSL group was a violent gang that had wrought “havoc” on the Atlanta area for nearly a decade.
After sitting in jail for more than two years during the longest-running trial in Georgia history, Thug pleaded guilty last month and was sentenced to serve only probation — a stunning end to a legal saga that could have seen him face a lifetime prison sentence.
For AEG’s attorneys, however, the end of Thug’s criminal case is just the start of the re-booted civil lawsuit – and also a chance to proceed on new accusations that the rapper has attempted to hide his copyrights.
In a court filing this summer, AEG’s lawyers said they had recently learned that Thug had sold more than 400 copyrighted songs for more than $16 million to an unknown third-party in 2021 – meaning after AEG had already filed its lawsuit seeking access to some of those songs. As a result of the sale, AEG said it might file an updated version of the case claiming the sale was fraudulent.
Now, in Friday’s new court filings, AEG says that even after “extensive research,” it remains “unclear which specific entities now own interests in such copyrights.” The company says it has filed issued subpoenas to 15 different entities seeking more information, and is still waiting to hear back.
“Based on the documents to be produced by those entities, AEG will determine whether to proceed against some or all of the collateral in this action as against defendants, to seek leave of court to
include claims against new parties with regard to such collateral, or to take steps outside this lawsuit with regard to such collateral,” the company wrote.
In technical terms, Friday’s filing was an agreement between the two opposing sides to push back all deadlines in the case by six months. That will give Thug a necessary three months to “become reacclimated to life outside of prison” and connect with his lawyers so he can “participate meaningfully in the action.” It will also give AEG the necessary time to “determine whether and how to proceed with regard to the copyrights.”
Neither side immediately returned requests for comment on Wednesday.
