My Block Records, established by Kirk Franklin, has filed a lawsuit against distributor SRG over missing payments and accounting records. The dispute centers on royalties from Erica Campbell's 2023 gospel project.
The $1 million gap in Erica Campbell's 2023 release
The core of the legal dispute involves the commercial success of Erica Campbell's 2023 gospel project,which reached No. 1 on the Gospel Airplay chart . According to the lawsuit, this specific release generated over $1 million in sales and registered more than 113 million streams between 2022 and 2024.
Despite these figures, My Block Records claims that SRG failed to provide a single royalty statement during this period of high activity. The label argues that the absence of these documents made it impossible for My Block Records to verify actual earnings or manage its business operations effectively, leading to a demand for more than $1 million in damages .
A 2021-2024 distribution deal under fire
The conflict stems from a distribution agreement that spanned from 2021 to 2024. As the report says, My Block Records relied entirely on SRG to manage the critical backend of the music business, including distribution, accounting,and the reporting of royalties for its artists.
The lawsuit alleges that SRG breached its contractual obligations by failing to maintain transparency. By omitting the required accounting information, SRG allegedly left My Block Records unable to confirm how revenues were calculated or determine exactly when payments were due to the label and its artists.
SRG's claim of an "orderly transition" of masters
In response to the allegations, SRG maintains that it has made repeated attempts to coordinate with My Block Records. The distributor claims it sought an orderly transition of accounting, payments, and master recordings after the distribution agreement concluded.
SRG asserts that it has maintained detailed records of all communications with the label. According to the report, SRG believes this documentation will provide the necessary context to refute the claims and demonstrate that the company has honored its commitments to its partners.
The $4,400 check and the Lattimore precedent
This dispute is not an isolated incident for the distributor. SRG is currently facing separate legal tension with an artist known as Lattimore, who claims the distributor provided only one royalty check for a 2021 album, totaling $4,400.
While SRG denies wrongdoing in the Lattimore case and is contesting the claims in court, the overlap suggests a recurring friction point between SRG and independent gospel labels. These combined cases highlight a growing concern regarding the transparency of royalty reporting and the power imbalance between independent labels and their distributors.
Who verifies the missing royalty statements?
Several critical details remain unverified as the case proceeds. While SRG claims to have "detailed records" of communications, it remains unclear if these records include the actual royalty statements that My Block Records claims were never delivered.
Furthermore,the source does not clarify if any partial payments were made during the 2021-2024 window, or if the $1 million in damages sought by My Block Records represents entirely unpaid funds or a combination of lost revenue and penalties. until the discovery process reveals the internal ledgers of SRG, the true scale of the accounting failure remains a matter of allegation.
Comments 0