Elliot Grainge’s 10K Projects Sued by Internet Money Label Over Breach of Contract and Misconduct

In a significant legal move, Taz Taylor's record label, Internet Money, has initiated a lawsuit against Elliot Grainge's 10K Projects in a Los Angeles federal court. The complaint, first detailed by Variety on Tuesday, centers on allegations that 10K breached its fiduciary and contractual duties by withholding millions in revenue. The label is accused of improper cross-collateralization of accounts and failing to distribute profit-sharing payments from their joint venture.

The partnership between the two entities began in August 2019 with an agreement to equally split net profits from co-signed talent. Following Taz Taylor’s successful solo releases—which fell outside the original arrangement—the deal was extended through June 2020. However, according to a complaint initially reported by Billboard, 10K Projects soon engaged in a "consistent and repeated pattern of violations," making significant financial and creative decisions without Internet Money’s approval and applying tens of millions in unauthorized deductions.

A major dispute involves the profits from "Lemonade," the 2020 global hit that peaked at No. 6 on the Billboard Hot 100. Internet Money asserts that 10K "diluted" earnings from the track by actions such as unilaterally approving a $500,000 advance to an unnamed artist and altering contractual terms without consultation. The suit further claims that 10K failed to finalize a profit participation agreement for Iann Dior with Taylor and has obstructed audit requests. An industry expert noted, "Joint ventures in music are built on transparency; when one party controls the purse strings without oversight, disputes like this are almost inevitable."

Elliot Grainge, who was appointed CEO of the Atlantic Music Group in October 2024, has overseen 10K Projects’ rise as a major force in the industry. Operating under Warner Music Group, the label’s roster includes established stars like Trippie Redd and the fast-rising Ice Spice, whose viral success has helped shape a new era in hip-hop and pop. When approached by Variety for comment, a representative for 10K Projects declined to address the ongoing litigation.

Internet Money is seeking millions in damages for breach of contract, fraudulent inducement, and unjust enrichment. This case underscores the delicate financial and operational balance required in music industry partnerships, where a lack of transparency can not only derail collaborations but also create lasting complications in royalty accounting and artist relations.