Whelp, Chad Hugo has entered the chat. The iconic co-founder and co-producer in Neptunes, took legal action against longtime collaborator Pharrell Williams, alleging financial misconduct tied to their shared business ventures. The lawsuit was filed Friday, Jan. 23, in a federal court in California.
Yikes. Not a good look for anyone here.
Get this, according to court filings, Hugo claims Williams improperly withheld funds and failed to maintain transparent accounting practices related to N.E.R.D. Music, LLC, the company the two co founded in 2014 alongside fellow N.E.R.D. member Sheldon “Shay” Haley. The trio has worked together for decades, producing chart defining music as The Neptunes and releasing albums under the N.E.R.D. banner.
What’s interesting, under the company’s operating agreement, Williams receives 50 percent of revenue generated from “touring and other income,” while Hugo and Haley are each entitled to 25 percent. Income from “merchandising and trademark income” is split evenly among all three partners.
In the complaint, Hugo describes himself as the “principal composer, arranger, multi-instrumentalist, and producer responsible for programming, instrumentation, and overall sound design.” He alleges that Williams is obligated to provide access to records detailing “income, expenses, royalties, and other financial issues,” but has failed to do so.
What’s more, Hugo further claims that since 2021 he has been prevented from reviewing company financials and has not received “[an] appropriate share of royalties in connection with The Neptunes and N.E.R.D.’s album sales and released music, as well as distributions from touring income, and various merchandising deals.”
The filing also states that “a significant number of songs are missing from [Hugo’s] label portals and SoundExchange portals,” suggesting unpaid royalties. Hugo alleges he is owed more than $1,000,000 from the group’s 2017 album No One Ever Really Dies alone.
Neither Williams nor his representatives have commented publicly. Hugo’s attorney, Brent J. Lehman, has also declined to issue a statement.