Neptunes Co-Founder Sues Pharrell Williams Over Royalty Dispute
Pharrell Williams, the celebrated musician and fashion designer, faces a significant legal challenge from his longtime creative partner and childhood friend, Chad Hugo. The lawsuit, filed in late January, alleges serious breaches of their business partnership and has sent shockwaves through the music industry.
Allegations of Withheld Royalties and Self-Dealing
According to court documents obtained by Billboard, Hugo accuses Williams of freezing him out of their joint company and engaging in what his attorney describes as "willful, fraudulent, and malicious conduct." The legal action claims Williams has withheld crucial financial documents and failed to distribute appropriate royalty payments from their extensive catalogue of work.
Hugo's legal team, led by attorney Brent J. Lehman, states in the filing: "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."
Specific Financial Claims and Damages Sought
The lawsuit makes specific financial claims, including:
- Approximately $1 million in damages related specifically to the 2017 N.E.R.D. album No One Ever Really Dies
- Unpaid revenue from a N.E.R.D. merchandising partnership
- Between $325,000 and $575,000 from the No One Ever Really Dies album alone
- Potential total damages exceeding $750,000 to $1 million
Hugo claims he has received no revenue since 2023 from their joint ventures, despite the continued commercial success of their back catalogue and recent projects.
Background of the Creative Partnership
The legal dispute marks a dramatic turn in one of music's most successful creative partnerships. Williams and Hugo, who grew up together in Virginia, formed The Neptunes production duo in the 1990s and went on to create:
- Iconic hits including Snoop Dogg's Drop It Like It's Hot and Britney Spears' I'm A Slave 4 U
- Production work for major artists including Jay-Z, Justin Timberlake, Kelis, Nelly, Gwen Stefani, and Usher
- The alternative hip-hop/rock group N.E.R.D., which produced multiple successful albums between the 2000s and 2010s
Their 2017 N.E.R.D. album No One Ever Really Dies featured the chart-topping single Lemon with Rihanna, along with collaborations with Future and Kendrick Lamar.
Previous Legal Action and Current Proceedings
This lawsuit follows previous legal action filed by Hugo in 2024, which accused Williams of attempting to "fraudulently" control the Neptunes name exclusively. That case continues in a federal trademark tribunal, indicating an ongoing deterioration of their business relationship.
In the current lawsuit, Hugo's attorneys claim that despite recent promises from Williams' legal team to produce financial documents, "no documents were ever produced" that could resolve the conflict. The filing notes that Williams' counsel "admitted having difficulty accessing the documents but acknowledged that such documents exist."
Legal Remedies Sought
The lawsuit seeks several specific remedies from the court:
- A comprehensive report of all royalties owed for both The Neptunes and N.E.R.D. ventures
- Clarification of both parties' rights as outlined in their operating agreement
- Substantial financial compensation for alleged withheld payments
- Punitive damages for what Hugo's legal team describes as fraudulent conduct
Attorney Brent J. Lehman stated in an emailed comment to Billboard: "After years of obfuscation by Pharrell and his team, Mr. Hugo had no choice but to seek substantial compensation and accountability in court. We look forward to presenting the evidence and obtaining the full relief the law provides."
The legal action represents a significant challenge for Williams, who has recently expanded his career into high fashion, launching a new collection for Louis Vuitton at Paris Fashion Week. Representatives for Williams have not responded to requests for comment regarding the lawsuit.
