By Industry Desk
In a significant legal development rocking the independent music sector, My Block Inc.—the influential gospel label founded by renowned producer Warryn Campbell and his wife, Grammy-winning artist Erica Campbell—has filed a lawsuit against their former distributor, SRG/ILS Group. The legal action, filed on Thursday, Sept. 17, alleges a systemic failure by the distributor to provide accounting statements or pay royalties for several high-performing gospel albums released between 2021 and 2024.
The lawsuit, which seeks upwards of $1 million in damages, paints a picture of a distribution partnership gone sour, characterized by a total lack of transparency regarding the financial performance of major gospel hits. This litigation marks the second major high-profile dispute involving SRG/ILS Group in recent months, following a similar complaint filed earlier this year by R&B veteran Kenny Lattimore.
The Core Allegations: A Lack of Financial Transparency
At the heart of the dispute is the claim that SRG/ILS Group—which operates in partnership with Universal Music Group’s Virgin Music—failed to uphold its fundamental contractual obligations. My Block Inc. contends that despite the successful commercial performance of their roster, they have not received a single royalty statement throughout the duration of their three-year distribution agreement.
“SRG has never provided Block a royalty statement,” the lawsuit states. “Due to SRG’s breaches, Block has been harmed in its business.”
The lawsuit highlights that the label’s releases during the term of the agreement—most notably Erica Campbell’s 2023 album I Love You—achieved significant cultural and commercial milestones. The album spawned the hit single "Feel Alright (Blessed)," which climbed to the No. 1 spot on Billboard’s Gospel Airplay chart. Furthermore, the album earned Grammy nominations for both Erica and Warryn Campbell, underscoring the high visibility and presumed profitability of the project.
Beyond the Campbell releases, the lawsuit notes that SRG also distributed other successful projects, including Lena Byrd Miles’ 2022 album Brand New—which featured the chart-topping single "WOW (Walk on Water)"—and The Walls Group’s 2023 album Four Walls.
Chronology of the Partnership and Dispute
The professional relationship between My Block Inc. and SRG/ILS Group spanned from 2021 to 2024. During this period, the gospel music landscape saw a surge in streaming and engagement, with the aforementioned projects acting as flagships for the label’s catalog.
The Rise of the Catalog
- 2021: My Block Inc. enters into a distribution agreement with SRG/ILS Group.
- 2022: The release of Lena Byrd Miles’ Brand New cements the label’s momentum, with "WOW (Walk on Water)" dominating the Gospel Airplay charts.
- 2023: Erica Campbell releases I Love You. The project receives critical acclaim and industry recognition through Grammy nominations for the tracks "Feel Alright" and "Positive," while "Feel Alright (Blessed)" reaches the pinnacle of the Billboard Gospel Airplay chart.
- 2023: The Walls Group releases Four Walls, further expanding the label’s footprint under the distribution deal.
- 2024: The distribution agreement concludes, leading to the current legal impasse regarding the transition of masters and the finalization of royalty accounting.
Supporting Data: Commercial Impact and Financial Claims
The legal filing emphasizes the scale of the commercial success generated by the label’s output during the three-year term. According to the complaint, the releases Brand New, Four Walls, and I Love You collectively amassed over 113 million streams between 2022 and 2024. Furthermore, the lawsuit claims these releases generated over $1 million in sales.
The plaintiff argues that the absence of royalty statements has prevented the label from accurately assessing its earnings, distributing payments to its artists, and planning for future business development. By withholding these documents, the label claims that SRG/ILS Group has effectively frozen the label’s ability to reconcile its books or pay its talent, leading to the demand for $1 million in financial damages for breach of contract.
The Broader Context: A Pattern of Disputes?
The litigation filed by My Block Inc. does not exist in a vacuum. It follows a closely watched lawsuit initiated in February by R&B singer Kenny Lattimore against the same distributor. Lattimore’s case centers on similar themes of alleged financial negligence.
In his suit, Lattimore alleged that despite his 2021 album Here to Stay producing the No. 1 Adult R&B Airplay single "Take a Dose," he received only a single royalty check for $4,400. Lattimore claims that, based on the performance of the album, he was entitled to over $100,000 in royalties.
SRG/ILS Group has vigorously contested Lattimore’s allegations, denying any wrongdoing and engaging in an ongoing discovery process. The fact that two separate entities—one a gospel label and the other an R&B veteran—have raised nearly identical concerns regarding accounting practices has intensified industry scrutiny on the distributor’s operational transparency.
Official Responses from SRG/ILS Group
In a formal response provided to Billboard following the filing of the My Block Inc. lawsuit, SRG/ILS Group defended its business practices and its commitment to its artists.
"We have made repeated efforts to engage with My Block and its representatives regarding the orderly transition of masters, accounting, and payments since our distribution deal concluded," the company stated.
The distributor maintained that it has kept meticulous records of its communications with the label and expressed confidence that these documents would clarify the situation. "We have maintained a comprehensive record of those communications and are confident that the facts and documentation will provide important context to the allegations now being made," the statement read.
SRG further emphasized its reputation within the music industry, noting: "The music industry is a close-knit community, and the reputation we have built through years of working with artists, executives and independent labels is something we value deeply. SRG remains focused on what it has always been focused on: serving our artists and partners, honoring our commitments, and building long-term relationships rooted in trust."
The company concluded its statement by expressing a desire for a peaceful resolution: "We wish My Block Records and its artists continued success and remain hopeful that, once this matter is resolved, both companies can move forward positively."
Implications for the Independent Music Industry
The case between My Block Inc. and SRG/ILS Group serves as a stark reminder of the complexities inherent in independent distribution deals. As independent labels seek to reach wider audiences through third-party distributors, the reliance on accurate and timely royalty accounting becomes the linchpin of the relationship.
1. The Necessity of Audits
This case highlights the critical importance of regular royalty audits for independent labels. Many labels often lack the infrastructure to verify digital service provider (DSP) data, leaving them reliant on the distributor’s reports. When those reports are missing, the legal system becomes the final resort for reconciliation.
2. Trust and Reputation
For distributors like SRG, the court of public opinion is as dangerous as the court of law. In an industry where reputation and artist relationships are the primary currencies, the accumulation of high-profile lawsuits alleging non-payment can create significant headwinds for future talent acquisition and partnerships.
3. The Shift in Power Dynamics
Independent labels are increasingly assertive in protecting their intellectual property and revenue streams. By taking legal action, labels like My Block are signaling that they are no longer willing to accept delays or a lack of documentation as the status quo. This could lead to more rigid contractual requirements for reporting and auditing in future distribution agreements across the industry.
4. Legal Precedent
If the courts find in favor of My Block Inc. or Kenny Lattimore, it could establish a more aggressive legal precedent for how artists and labels hold distributors accountable. The outcome of these cases will likely be studied by music attorneys for years to come, potentially leading to standardized "transparency clauses" that mandate real-time or more frequent financial reporting from distributors to their label partners.
As the legal proceedings continue, the music industry watches closely. For Warryn and Erica Campbell, the goal is clear: to secure the financial future of their artists and ensure that the fruits of their labor—which have resonated with millions of listeners—are properly accounted for. For SRG/ILS Group, the focus remains on defending their internal processes and preserving their standing in a competitive marketplace.
