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Chad Hugo alleges Pharrell Williams cut him out of business dealings and owes him up to $1 million from N.E.R.D's last album.
In a new lawsuit filed on Friday, January 23, Hugo's attorneys accused the multifaceted producer of various offenses, from concealing vital information to diverting earnings he's owed. "Such willful, fraudulent, and malicious conduct warrants the imposition of punitive damages," Hugo’s attorney, Brent J. Lehman, wrote, per Billboard.
“Plaintiff has not received his 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,” Lehman continued.
“A standard accounting review is already in progress," Williams' rep said. "The lawsuit filed is premature as there may not even be a dispute between the parties. If the accounting review determines that money is owed, the appropriate party will pay it. Pharrell has consistently acted in good faith. He has great respect for Chad and looks forward to resolving this in a way that honors their shared history.”
Hugo and Williams, who were childhood friends before their rise to fame in the music industry, have been involved in a legal dispute for the past few years. It began as far back as 2021 when Hugo repeatedly attempted to gain access to necessary records as part of their operations agreement. After failing to obtain completed documents, Hugo's attorneys got involved and sent demand letters for financial disclosures, which continued over the last four years.
“Defendant Williams’ persistent failure to provide [financial records] constitutes a breach of the operating agreement,” Hugo’s attorneys said. “Plaintiff has been deprived of the transparency necessary to evaluate buyout proposals, confirm the calculation and categorization of distributions owed to him … and assess revenues.”
Hugo's frustration with Williams led him to file a lawsuit over the trademark for their Neptunes brand in 2024. He alleged Williams and his company tried to register trademarks for their shared IP. At the time, Williams and his team denied allegations that they acted in bad faith and claimed they offered Hugo opportunities to join in and "share in ownership." However, Williams and Hugo haven't been on speaking terms since September 2024.
In his lawsuit, Hugo alleged he hasn't received any revenue from a N.E.R.D merchandise partnership since 2023. His attorneys claimed they’re owed “at least $325,000-$575,000” from the group's 2017 LP No One Ever Really Dies, with “potential damages” over the album “exceeding $750k-$1M.” Hugo is asking for a full account of Neptunes & N.E.R.D's royalties and an official judgment about their operating agreement.