Drake settles part of ongoing legal fight with UMG

Canadian rapper resolves one legal challenge but continues fight against major label over controversial diss track
Drake at the 2017 Billboard Awards Press Room at the T-Mobile Arena on May 21, 2017, in Las Vegas. (Photo credit: Shutterstock.com/Kathy Hutchins)

A significant development has emerged in the complex web of legal challenges surrounding Drake as the Canadian music superstar reached a settlement with broadcasting giant iHeartMedia. This resolution marks a partial victory in his multi-front legal battle stemming from the unprecedented rap feud with Kendrick Lamar that captivated the music world throughout 2024.

The settlement specifically addresses allegations Drake made regarding suspected payola practices connected to the widespread radio play of Lamar’s chart-dominating diss track “Not Like Us.” While this agreement resolves one aspect of Drake’s legal strategy, his more substantial lawsuit against Universal Music Group (UMG) continues advancing through federal court.


Legal victory in Texas courtroom

The now-settled legal action originated in a Bexar County, Texas, courtroom after Drake filed suit in November 2024. Court documents revealed Drake’s legal team alleged iHeartMedia received financial incentives from Universal Music Group to artificially boost radio airplay for Lamar’s track at the height of their highly publicized feud.

Details of the settlement filed on Feb. 27, 2025, remain confidential as both parties have agreed not to disclose specific terms. Representatives for Drake issued a brief statement acknowledging the resolution, noting only that the parties reached a mutually acceptable agreement that satisfies both sides.


The decision to settle this portion of his legal campaign suggests Drake may have secured favorable terms from the broadcasting company. Legal analysts note that corporate defendants often prefer negotiated settlements when facing potentially damaging public disclosures through discovery processes.

Federal lawsuit continues against Universal

While resolving the iHeartMedia situation, Drake maintains his more substantial legal action against industry powerhouse Universal Music Group. This federal lawsuit filed in New York City on Jan. 15, 2025, centers on serious allegations of defamation and commercial interference.

Drake’s legal team contends Universal not only approved but actively promoted Lamar’s track despite lyrics that Drake claims falsely characterized him as a pedophile. The lawsuit frames these actions as part of a calculated strategy to diminish Drake’s commercial value ahead of upcoming contract negotiations.

Court filings suggest Drake believes Universal orchestrated a comprehensive promotional campaign designed to transform “Not Like Us” into a cultural phenomenon specifically to undermine his market position. Industry observers note the unusual nature of an artist suing their own distributor while still under contract.

Rap battle reaches unprecedented scale

The legal maneuvering unfolds against the backdrop of what many music critics consider the most consequential rap battle in the genre’s history. The exchange of tracks between Drake and Lamar escalated throughout 2024, culminating in Lamar’s release of “Not Like Us,” which dominated streaming platforms and radio airplay for months.

The phenomenal success of the track recently culminated in five Grammy Awards, cementing its place in hip-hop history despite the contentious circumstances surrounding its creation and promotion. Music industry analysts suggest the unprecedented commercial performance of a diss track created a uniquely complex situation for labels representing both artists.

What began as traditional rap competition evolved into something far more consequential when Lamar’s lyrics included serious allegations against Drake. This escalation transformed standard industry practice regarding diss tracks, creating new challenges for labels and broadcasters navigating the potential legal implications.

Financial implications for involved parties

The settlement with iHeartMedia potentially signals Drake’s willingness to resolve disputes when presented with favorable terms. However, the continued pursuit of action against Universal suggests significantly higher stakes in that relationship.

Industry insiders familiar with major label contracts note that Drake’s current agreement with Universal represents one of the most valuable artist relationships in the music business. The timing of contract renewal discussions adds additional complexity to the ongoing legal battle as both sides evaluate their negotiating positions.

Financial analysts tracking public music companies suggest UMG faces meaningful risk from this litigation, given Drake’s status as one of the industry’s most consistent commercial performers. The unusual spectacle of an artist suing their own label while actively releasing music presents challenges for traditional business relationships throughout the industry.

Broader impact on music industry practices

Beyond the immediate parties involved, this legal situation raises important questions about record label responsibilities regarding content released through their distribution channels. Drake’s allegations essentially ask courts to consider whether labels bear responsibility for potentially defamatory content in songs they promote.

The settlement with iHeartMedia similarly highlights ongoing scrutiny of radio promotion practices across the music industry. While formal payola allegations are rare in contemporary litigation, questions about the relationship between major labels and broadcasting companies have persisted for decades.

Media law experts suggest these cases could potentially establish new precedent regarding the boundaries of artistic expression and corporate responsibility in music distribution. The outcome might influence how labels evaluate potentially controversial content in an era when social media can rapidly amplify allegations contained in song lyrics.

Uncertain future for artist relationships

As this legal situation continues unfolding, industry observers note the precarious position of artists caught between competing label interests. Both Drake and Lamar maintain distribution relationships with Universal Music Group through different imprints, creating potential conflicts of interest as the company navigates its responsibilities to both valuable artists.

Interestingly, while Drake has pursued legal action against both iHeartMedia and Universal, he has not filed claims directly against Lamar despite the rapper being the author of the controversial lyrics. This strategic decision suggests Drake views the corporate promotion of the content, rather than its creation, as the actionable harm.

As the music industry continues evolving in response to this unprecedented situation, artists and labels alike will closely monitor the outcome of Drake’s remaining lawsuit. The resolution could potentially reshape expectations around promotional responsibilities and the boundaries of acceptable content in high-profile artist competitions.

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