Nelly has officially been cleared of a $50 million lawsuit filed by Ali on behalf of the St. Lunatics, marking a significant development in the ongoing legal battle concerning royalties and contributions to Nelly’s landmark album Country Grammar. Recently, Ali announced his decision to drop the lawsuit, which accused Nelly of withholding royalties from the group.
The lawsuit initially claimed that Nelly, a St. Louis native, had allegedly manipulated the St. Lunatics into believing they had been compensated for their work on his diamond-certified debut album. The complaint detailed how the group members, including Murphy Lee, Kyjuan, and City Spud, later expressed that they did not consent to the lawsuit and withdrew their support shortly after it was filed last year.
On April 10, 2025, Billboard reported that Ali formally moved to dismiss the lawsuit, although there has been no public indication of whether a settlement was reached between the parties. Despite this positive outcome for Nelly, his legal team is urging the judge not to completely dismiss the case just yet. They are looking to pursue Ali for what they describe as a “frivolous” lawsuit that forced Nelly to spend resources defending against a claim they believe was without merit.
In their court filings, Nelly’s attorneys argued that the lawsuit was an attempt to coerce him into unnecessary legal battles, stating, “Plaintiff’s counsel succeeded in its frivolous campaign aimed at forcing [Nelly] to spend money defending Plaintiff’s ridiculous time-barred claim.” They are requesting the court to maintain jurisdiction to potentially impose sanctions on Ali for the lawsuit.
The original complaint alleged that Nelly assured the St. Lunatics that they would receive the financial success they were entitled to, leading them to believe they had been compensated for their contributions. According to the suit, every time the plaintiffs confronted Nelly regarding payments, he would reassure them that they had nothing to worry about, fostering a sense of trust that he would not neglect their financial interests.
In a notable turn of events, shortly after the lawsuit’s filing, the majority of the St. Lunatics, excluding Ali, reunited with Nelly on stage at the 2024 American Music Awards, where they publicly demanded to be removed from the lawsuit. This shift in support may have played a role in Ali’s decision to withdraw the legal action.
The lawsuit seemed to gain traction following Nelly’s sale of his music catalog to HarbourView Equity Partners for an impressive $50 million in 2023. In previous interviews, Ali had expressed frustration over unpaid royalties, estimating that Nelly owed the group between $70,000 and $90,000. Despite these claims, Ali had also made it clear that he would not perform with Nelly again until the financial disputes were resolved.
As the dust settles on this legal saga, it appears that Nelly is now free from the burden of the lawsuit, allowing him to focus on his music career without the weight of legal challenges looming over him. The resolution of this case may pave the way for renewed collaborations and performances within the St. Lunatics, as they navigate their professional relationships moving forward.
