Chad Hugo Sues Pharrell Over Alleged Withheld Royalties
Pharrell Williams is being sued by his longtime Neptunes partner Chad Hugo, who is accusing the superstar producer of withholding money and failing to properly account for shared business finances.
According to a complaint reviewed by Complex and filed Friday (Jan. 23) in federal court in California, Hugo alleges that Williams has not provided full financial transparency related to their joint business ventures. Hugo, who describes himself in the lawsuit as the principal composer and sound architect of The Neptunes, claims he has been denied access to key financial records and unpaid royalties.
Hugo and Williams met in Virginia Beach in the late 1980s and went on to form The Neptunes in the early ’90s, becoming one of the most influential production duos in modern music. Along with third member Sheldon “Shay” Haley, they later formed N.E.R.D., releasing multiple albums and touring worldwide.
Inside the Deal (and the alleged missing money)
At the center of the lawsuit is N.E.R.D. Music, LLC, a company formed in 2014. Under the company’s agreement, Williams receives 50% of touring and related income, while Hugo and Haley each receive 25%. Merchandising and trademark income is split evenly among the three.
Hugo claims Pharrell was responsible for managing and reporting the company’s finances, but says he has been requesting access to records since 2021 with little to no response. The suit alleges that Hugo has not received his full share of royalties from album sales, streaming, touring, and merchandising.
As part of the filing, Hugo points to missing song data in his label and SoundExchange portals, which he says indicates unpaid royalties. He estimates he is owed at least $325,000 (and potentially more than $1 million) from N.E.R.D.’s 2017 album No One Ever Really Dies alone.
Down This Road Before
The lawsuit also notes that this is not the first legal dispute between the former collaborators. In 2024, Hugo accused Williams of attempting to improperly claim sole ownership of The Neptunes name rights.
As of publication, Hugo’s attorney declined to comment, and no legal representation for Williams has been listed.
