Dupri has struggled with severe financial issues over the past few years, and has even faced foreclosure on his $4 million Atlanta mansion twice.
[FLASHBACK: SoSo In Debt! Jermaine Dupri Barely Avoids Foreclosure… ]
While he was recently able to save his home by paying off the remainder of a $3 million tax lein, this new lawsuit filed by SunTrust bank could prove more devastating now that the rights to songs from his So So Def label are now on the line.
According to the AJC, SunTrust’s lawsuit alleges that Dupri is in default and still owes money on a $4.9 million loan taken out in 2010.
The loan was secured by copyrighted music owned by Dupri, So So Def and other businesses, as well as a building on Briarwood Court in DeKalb County that houses two recording studios.
The debt originated in 2009 as part of an earlier loan that Dupri, who is listed as Jermaine Dupri Mauldin, took on to pay off income tax and other liabilities, according to a separate court document.
The loan was adjusted in 2010 and Dupri, So So Def and another company controlled by Dupri, Southside LLC, were listed as guarantors. Southside was not named in the suit.
The bank allegedly tried to make a deal with Dupri pre-lawsuit which involved the acquisition of certain song rights in exchange for removal of the debt. The deal fell through for unknown reasons.
The SoSo Def catalog contains songs by Lil Bow Wow, Xscape, Da Brat, Jagged Edge and more.
In February, Dupri held an “All-Star Anniversary Concert” to mark the 20th year of his record label. The concert at the Fox Theatre featured So So Def’s laundry list of artists, including Kris Kross, Da Brat, Jagged Edge, Xscape, Bow Wow and others.
There were unsubstantiated rumors that Dupri was considering taking his SoSo Def All-Star’s on the road, but after Kris Kross member Chris Kelly passed away last month, it seems those plans may have been put on hold.
Hopefully Jermaine can make it out of this one with his music catalog intact…. stay tuned.