As of January 2026, Pharrell Williams is facing a major new lawsuit. Chad Hugo is suing Pharrell Williams (filed January 2026) for allegedly withholding royalties, mismanaging N.E.R.D. Music, LLC funds, and failing to provide financial records.
Hugo claims he is owed over $1 million for work on the 2017 No One Ever Really Dies album and related projects. This follows a 2024 trademark dispute where Hugo accused Williams of trying to secure sole rights to "The Neptunes" name.
At the center of the new lawsuit is Hugo’s claim that he has not received what he believes is his rightful share of money earned through The Neptunes’ work, and specifically, income connected to N.E.R.D., the group they were involved in alongside their production run.
Hugo alleges the music icon-turned-fashion figure has "engaged in self-dealing, concealed material information, and diverted revenues owed." "Such willful, fraudulent, and malicious conduct warrants the imposition of punitive damages," Hugo’s attorney, Brent J. Lehman, said in court documents.
According to the filing, Hugo claims Williams has withheld royalties and documents that would help determine what he is owed. "Plaintiff has not received his appropriate share of royalties in connection with The Neptunes and N.E.R.D.’s album sales and released music, as well as distributions from touring income, and various merchandising deals," Lehman wrote.
In April 2024, a Petition for Cancellation was filed regarding trademark applications for "The Neptunes". Hugo alleged Williams' company (PW IP Holdings LLC) filed for trademark rights on music, videos, and clothing without his consent, violating their 50/50 partnership agreement.
Missing Royalties
"Malicious" Conduct
The 2026 Royalties Lawsuit
Filed on January 23, 2026, in a California federal court, this new lawsuit significantly expands the legal rift between the former childhood friends. The following details what is at issue.Financial Allegations
Hugo claims Williams has withheld his fair share of royalties from The Neptunes and N.E.R.D., including revenue from album sales, streaming, touring income, and merchandise. The suit sues for breach of fiduciary duty and failure to account for money earned.
Missing Royalties
Hugo specifically alleges he has not received income from N.E.R.D. merchandising since late 2023. He is seeking up to $1 million in damages, with a focus on unpaid earnings from the 2017 N.E.R.D. album No One Ever Really Dies.
"Malicious" Conduct
The suit accuses Williams of "self-dealing" and "willful, fraudulent, and malicious conduct" by concealing financial records and diverting funds.
Transparency Issues: Hugo’s attorneys claim that requests for financial documents
Transparency Issues: Hugo’s attorneys claim that requests for financial documents