Internet Money Files Explosive Lawsuit Against 10K Projects, Alleging Millions in Withheld Profits
LOS ANGELES, CA – In a stunning development shaking up the music industry, Internet Money, the influential music production collective fronted by Taz Taylor, has filed a lawsuit against Elliot Grainge’s 10K Projects. The suit, filed Tuesday in Los Angeles Federal Court, alleges a pattern of breached fiduciary and contractual obligations, claiming 10K Projects withheld millions of dollars in profits owed to Internet Money. This is a breaking news story with significant implications for artist-label relationships and profit-sharing in the modern music landscape.
The Core of the Dispute: A 50/50 Split Gone Sour
The legal battle stems from a joint venture initiated in August 2019, designed to sign and develop artists with a seemingly straightforward agreement: a 50/50 split of net profits. The partnership initially flourished, but tensions arose as Taylor began releasing music independently, achieving considerable success. This led to a 2020 amendment extending the venture to June 2024. However, according to the lawsuit, 10K Projects allegedly began a systematic pattern of violating the agreement.
The complaint details accusations of 10K knowingly “cross-collateralizing accounts” – a financial maneuver that effectively muddied the waters of profit allocation – and actively “evading payment” of Internet Money’s rightful share. Crucially, the agreement stipulated that 10K required Internet Money’s approval for all business and creative decisions, including A&R and marketing expenditures. Internet Money alleges this requirement was consistently ignored, with 10K unilaterally incurring “tens of millions of dollars in deductions” without consent.
“Lemonade” and Beyond: Specific Allegations of Financial Misconduct
The lawsuit doesn’t shy away from specifics. It points to the 2020 hit “Lemonade,” which peaked at No. 6 on the Billboard Hot 100, as a prime example of alleged misconduct. Internet Money claims 10K “diluted” and “effectively gave away” the song’s proceeds by issuing a $500,000 advance to an unnamed artist and then renegotiating the deal – all without Internet Money’s knowledge or approval. Further accusations include a failure to honor profit-sharing agreements related to artist Iann Dior and a consistent refusal to allow independent audits of the financial records.
Evergreen Insight: Disputes over royalties and profit-sharing are unfortunately common in the music industry. The complexity of modern music revenue streams – encompassing streaming, publishing, licensing, and merchandise – often creates opportunities for disagreement. Clear, meticulously drafted contracts, coupled with transparent accounting practices, are essential to prevent these kinds of legal battles. Artists should always seek independent legal counsel before entering into any agreement with a label or distributor.
Elliot Grainge and 10K Projects: A Rising Force in the Industry
Elliot Grainge, who recently ascended to the role of CEO of Atlantic Music Group in October 2024, has rapidly built 10K Projects into a significant player in the music industry. The label, now under the Warner Music Group umbrella, boasts a roster including Trippie Redd and Ice Spice. This lawsuit comes at a critical juncture for Grainge, potentially impacting his reputation and the future trajectory of 10K Projects. As of this report, a representative for 10K Projects has offered “no comment” on the allegations.
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Internet Money is seeking millions in damages, citing breach of contract, accounting irregularities, fraudulent inducement, and unjust enrichment. The outcome of this case could set a precedent for how joint ventures are structured and managed within the music industry, and will undoubtedly be closely watched by artists and labels alike. The legal proceedings are expected to be lengthy and complex, but the core issue remains clear: a dispute over fair compensation and contractual integrity in a rapidly evolving musical landscape.
Stay tuned to archyde.com for continuing coverage of this developing story and in-depth analysis of the legal and industry implications. We’ll be following the case closely and providing updates as they become available, offering you the latest breaking news and expert insights.
