Ultimate Rap League co-founder Dagoberto Velez, aka Norbes, has filed a $40 million lawsuit against Ultimate Rap League LLC (URL), claiming that he was forced out of the company following a lucrative deal with Drake and broadcasting platform Caffeine.
Velez named URL executives Troy Mitchell, Eric Beasley, and Jean French in the lawsuit, alleging breach of contract, wrongful dissolution, negligent misrepresentation, breach of fiduciary duty, and unjust enrichment among other counts. Velez explained that he co-founded URL in 2009 and was responsible for securing talent for the battles, and he often appeared on camera to represent URL. He added that he believes there is a violation of their original 2009 work agreement, with the aforementioned executives engaging in a "wrongful dissolution" of their professional relationship and breaching a contract.
In February, URL announced that they had signed a partnership with Drake and Caffeine to supply battle rap content on Caffeine’s social broadcasting platform. By April, URL "dissolved" their relationship with Velez. In July, Caffeine announced that it raised $113 million in a Series D round of funding, adding that battle rap will be its "anchor" content following their partnership with URL.
In addition to the $40 million, Velez is also seeking a 10% royalty in perpetuity from URL.
Source: Yahoo!
