Triller responds to a lawsuit filed by the co-founders of Verzuz.
Swizz Beatz and Timbaland are suing social video platform Triller for failing to sell their “Verzuz” franchise. However, the social media platform which hopes to replace Tik Tok in the US market is being pushed back as it claims that the rappers have been paid over 50 million so far from the deal and that the two rappers have not fulfilled their obligations. .
In a new lawsuit filed by the two hip-hop icons, they say Triller has failed to honor its agreement to acquire Verzuz despite ending Verzuz’s events on its platform.
Last March, Tiller announced that it had acquired Verzuz to run its social platform in an effort to expand into the music space and work with prominent artists. Both rappers were said to be shareholders under the sale agreement for an undisclosed amount of money, and they had also said that some of the equity from their remaining shares would be given to the 43 performers who participated in Verzuz.
Verzuz was created by Swizz Beatz and Timbaland as an idea out of an Instagram Live, but instead of the artists talking, they would crash. The event became popular mainly because the Covid-19 pandemic had forced people indoors due to social distancing regulations and everything moved online.
Music fans, especially those in the hip hop realm, wanted entertainment which Verzuz delivered. However, a year since the deal was brokered, the two rappers say Verzuz has botched the deal.
According to TMZ, Timbaland and Swizz want to recover $28 million from Tiller, which is unpaid money owed to him for the rap battle idea.
The rappers say that initially Triller made two payments for the amount, but then the company defaulted. After this incident, the rappers say that Triller eventually made another payment, but soon after, they fell through the deal.
Tiller now owes $28 million plus interest, the rappers say.
Meanwhile, according to TMZ, Triller says the rappers have been paid millions in cash and the stock is unaware of what’s going on.
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“This is really unfortunate and we hope it is nothing more than a misunderstanding promoted by lawyers. We don’t want to air our dirty laundry in the press, but we paid Swizz and Tim millions in cash and stock,” a statement from Tiller said.
“No one has benefited as much from Tiller to date. Thriller has helped VERZUZ reach new heights – making it the global cultural phenomenon it is today. We hope to resolve this amicably and quickly, and we really hope it’s just a misunderstanding. If we are forced to defend it, we are more than optimistic, truth and facts are on our side,” Tiller said in an earlier statement.
In a subsequent separate statement Monday afternoon, Tiller claimed that they have paid Swizz and Timbaland $50 million so far under the deal, and there is no dispute over the money.
“This isn’t a feud over Verzuz, it’s just over payouts to Swizz and Tim. Swizz and Tim have been personally paid by Tiller over $50 million in cash and stock to date, and they stand to gain even more as time goes on. In addition, they have annual obligations, which if fulfilled and there are no violations, they are given the right to additional payments,” the company’s announcement states.
It continued, “Only a $10 million payment is in question. We do not believe they have yet met the limits for that payment, which include, but are not limited to, delivering a certain number of Verzuz events for 2022. We have attempted to resolve this amicably and this does not affect operations of Verzuz or Tiller’s Ownership of Verzuz. If this will continue in court, we await a decision that weighs all the facts,” the statement concludes.
