St. Lunatics’ $50M Lawsuit Against Nelly: Dismissed, $67,586 Fee

The St. Lunatics’ $50 million lawsuit against Nelly over Country Grammar collapsed within months of being filed. Three of the four named plaintiffs said they never authorized the case, the lone remaining plaintiff voluntarily dismissed his claims in April 2025, and a federal court later ordered his attorney to pay Nelly’s legal team $67,586 for pursuing what a magistrate judge called a frivolous and time-barred action.

Who Actually Sued

The complaint filed on September 18, 2024, in the U.S. District Court for the Southern District of New York listed four plaintiffs: Ali Jones, Murphy Lee, Kyjuan, and City Spud. Six days later, attorney N. Scott Rosenblum sent a letter on behalf of Murphy Lee, Kyjuan, and City Spud stating that they “did not authorize” being named and demanding removal “forthwith.”1People. Nelly’s St. Lunatics Bandmates Ask to Be Removed From Unauthorized Lawsuit Nelly’s legal team told the court those three “never wanted to sue Nelly in the first place.”2iHeartRadio. Nelly Demands Sanctions After St. Lunatics Member Drops Frivolous Lawsuit

By November 2024, an amended complaint left Ali Jones as the sole plaintiff. The three members who backed out later appeared alongside Nelly at the 2024 American Music Awards.3Complex. Nelly Sued by St. Lunatics Over Country Grammar Credits

What the Lawsuit Claimed

Jones alleged that he and the other St. Lunatics were the “authors, creators, composers, writers and copyright owners” of lyrics on eight Country Grammar tracks, including the title track, “Steal the Show,” “Thicky Thick Girl,” “Batter Up,” and “Wrap Sumden.”4Billboard. Nelly Sued by St. Lunatics in Copyright Lawsuit Over Country Grammar The complaint accused Nelly of “manipulating” the group into believing they would be paid as “friends” and promising writing and publishing credit that never came. Jones sought at least $50 million in damages.5FOX 2 St. Louis. Judge Sides With Nelly in $50M Copyright Lawsuit

The amended complaint added HarbourView Equity Partners as a defendant, pointing to Nelly’s 2023 sale of a 50% interest in his catalog to the firm for $50 million as evidence of the value Jones said he had been denied.6Billboard. Nelly’s St. Lunatics Bandmates Pull Out of Country Grammar Profits Lawsuit

Why the Case Failed

Nelly’s defense turned on timing. Copyright ownership claims carry a three-year statute of limitations, and his attorneys argued the clock started running in 2021, when they formally “expressly repudiated” Jones’s co-ownership claims after the group hired a lawyer to contact Universal Music Publishing Group. By that measure, the September 2024 filing was years too late.7Complete Music Update. Nelly Wants Former Bandmate’s Lawyers Sanctioned in Dispute Over Country Grammar Copyrights

Jones’s legal team moved to voluntarily dismiss the case in April 2025 without explanation and without any indication of a settlement.8Rolling Stone. Nelly Lawsuit Over Country Grammar Dismissed by St. Lunatics Member Nelly’s attorneys, led by Kenneth Freundlich, asked the court to keep jurisdiction so it could hear a sanctions motion, calling the case a “frivolous campaign aimed at forcing Haynes to spend money defending Plaintiff’s ridiculous time-barred claims.”9Billboard. Nelly Lawsuit Dismissed by Ex-Bandmate in Country Grammar Case

The Sanctions and $67,586 Fee Award

On October 10, 2025, U.S. Magistrate Judge Robert W. Lehrburger issued a report and recommendation finding Jones’s claims “time-barred, preempted, or otherwise frivolous” and holding that it should have been “patently obvious” they could not survive judicial review.5FOX 2 St. Louis. Judge Sides With Nelly in $50M Copyright Lawsuit The sanctions motion was brought under Federal Rule of Civil Procedure 11 and 28 U.S.C. § 1927.10Music Business Worldwide. Ali Jones v. Nelly Decision and Order Lehrburger concluded that Jones’s lead attorney, Precious Felder Gates, had “vexatiously protracted the proceedings in bad faith.”11Revolt. Judge Says Ali’s Attorney Must Repay Nelly in Country Grammar Lawsuit Local counsel Gail Melanie Watson was ordered to pay a separate $1,000 fine.

Nelly’s team initially sought $78,007 for 142 hours of billable work: Freundlich at $725 per hour, Jonah Grossbardt at $575, and Hugh Rosenberg at $375.12Billboard. Nelly’s Lawsuit Seeks Legal Bills From Lawyer Over Country Grammar Felder Gates argued the records were vague, included clerical tasks, and reflected overstaffing. The court trimmed entries it found “excessive, vague or clerical in nature” but rejected most of her objections.13FOX 2 St. Louis. Nelly Wins $67K After Ex-Bandmate’s Copyright Lawsuit Dismissed

U.S. District Judge Victor Marrero adopted the recommendation in November 2025 and, on May 28, 2026, issued a final order directing Felder Gates to pay $67,586 in attorney fees to Nelly’s legal team. The court ordered Nelly’s lawyers to certify in writing when the payments are received.14Music Business Worldwide. Nelly Awarded Over $67K to Be Paid by Lawyer Who Filed Ex-Bandmate’s Country Grammar Copyright Suit

Nelly’s Explanation

Speaking on the Joe and Jada podcast in June 2025, Nelly said “people were misinformed” and that “the truth just needed to be told” about how the group’s early deals were structured. He attributed the flawed structure to Ali, the oldest member, whose personal associates handled the group’s negotiations with Universal Music Group. Some members, he said, “chose not to participate in meetings as deals were being brokered,” and once they learned the reality, “they understood.”15Yahoo Entertainment. Nelly Says People Were Misinformed About St. Lunatics Lawsuit Nelly said he remains on good terms with Murphy Lee, Kyjuan, and City Spud but acknowledged his relationship with Ali is strained.16Revolt. Nelly Blames Misinformation for St. Lunatics $50 Million Lawsuit

A Separate Country Grammar Case Is Still Pending

The Ali Jones case is not the only litigation tied to the album, and the two should not be confused. On January 27, 2025, D2 Productions, Inc., a St. Louis recording studio, filed a separate lawsuit in St. Louis County Circuit Court against Nelly, Ali Jones, Murphy Lee, and Kyjuan. D2 alleged that recordings made at its studios between 1997 and 2000 for Country Grammar and Nellyville were contractually the studio’s “sole property” and that the defendants conspired in a “Secret Arrangement” to let Nelly register as sole copyright holder. The studio sought at least $10 million in general damages, at least $10 million in special damages, and sole ownership of the master recordings.17Yahoo Entertainment. Recording Studio Sues Nelly, St. Lunatics Over Country Grammar Royalties

The case was briefly removed to federal court, but on June 10, 2026, U.S. District Judge Matthew T. Schelp remanded it, ruling that the state-law breach of contract, fraud, conspiracy, and tortious interference claims were “qualitatively different” from copyright actions.18Justia. D2 Productions Inc. v. Haynes et al., Order Granting Remand The D2 case remains pending in state court.