Ali Drops $50 Million St. Lunatics Lawsuit Against Nelly

Nelly is now in the clear for the $50 million lawsuit that St. Lunatics rapper Ali filed on behalf of the group. 

Billboard reports that Ali moved to drop the lawsuit on Apr. 10 — but Nelly’s legal team is requesting for the judge not to fully dismiss the case yet because they could sue Ali for the “frivolous” lawsuit. 

“Plaintiff’s counsel succeeded in its frivolous campaign aimed at forcing [Nelly] to spend money defending Plaintiff’s ridiculous time-barred claim,” wrote Nelly’s legal team. “The Court is respectfully requested to retain jurisdiction and set a briefing and hearing schedule for [potential sanctions].”

Ali originally filed the lawsuit on behalf of the St. Lunatics last year accusing Nelly of withholding royalties for the contributions the group made to his debut album, Country Grammar. Soon after it was filed, St. Lunatics members Murphy Lee, City Spud and Kyjuan all pulled out of it, claiming they didn’t consent to the lawsuit. 

Back in 2023, Ali claimed on VladTV that he’d never perform with Nelly again because of the money he believes that the group is owed. “A tiger ain’t never gonna change his stripes,” he said. “I watched it for 20 years and I’m the butt of the joke because it took me 20 years to realize it. I could put a never, ever behind it will I ever hit the stage or do anything with him.”

“He has no real, raw good intentions for others,” continued Ali. “Not for us and we’ve all sat together and searched hard to try to find a time that didn’t benefit him. He got $50 million, I’m happy for him. That’s what he wants. He wants a billion.”

Ali’s sentiments followed a post he made in 2021 claiming that Nelly “hustled” the group. Ali alleged that he created the group in 1993 and taught Nelly and the group’s other members to rap. When Ali was offered a solo deal, he claimed he turned it down for the group’s betterment. When it was Nelly’s turn, he apparently didn’t return the favor. 

“Fast forward 1999: Ma$e Manager at the time (Cudda)…was introduced to us…and he immediately started separating the group. He wanted Nelly and City spud. They left with Cudda (went to Harlem),” he wrote. “The separation became The reality…They had left !!! We(The rest of the group) felt ‘HUSTLED’….we were *1 until, The opportunity was presented to be *2😔 ..they hustled us!!”