January 26, 2026
Pharrell Williams is being sued by former friend and longtime collaborator Chad Hugo, who alleges he has been denied the group’s royalties.
Pharrell Williams is being sued by his former Neptunes and N.E.R.D. partner, Chad Hugo, who accuses his former friend and collaborator of withholding money and failing to provide proper accounting of their company’s finances.
In a federal lawsuit filed in California on Jan. 23, Hugo—who describes his role in the Neptunes partnership as the “principal composer, arranger, multi-instrumentalist, and producer responsible for programming, instrumentation, and overall sound design”—claims that Williams excluded him from their company and owes him up to $1 million from an N.E.R.D. album, Complex reports.
“Williams engaged in self-dealing, concealed material information, and … diverted revenues owed to plaintiff,” Hugo’s attorney, Brent J. Lehman, said. “Such willful, fraudulent, and malicious conduct warrants the imposition of punitive damages.”
In the lawsuit, Hugo recounts his decades-long relationship with Williams, which began with their childhood friendship in Virginia Beach, Virginia, and led to the formation of the Neptunes in the early ’90s. Together, they produced a string of hits—Nelly’s “Hot in Herre,” Snoop Dogg’s “Drop It Like It’s Hot,” Gwen Stefani’s “Hollaback Girl,” and Justin Timberlake’s “Rock Your Body”—and, along with Sheldon ‘Shay’ Haley, performed as the group N.E.R.D.
Hugo’s dispute with Williams centers on their company, N.E.R.D. Music, LLC, which they formed in 2014. Hugo claims Williams, responsible for reporting income, expenses, and royalties, failed to do so. Under the company’s terms, Williams receives half of touring and other income, while Hugo and Haley each get 25%, with merchandising and trademark income split equally.
Hugo says he has struggled since 2021 to access the company’s financial records from Williams, claiming he hasn’t received his proper share of royalties from Neptunes and N.E.R.D. music, touring, and merchandise. He points to missing songs on SoundExchange portals as evidence, estimating he is owed between $325,000 and over $1 million from N.E.R.D.’s 2017 album No One Ever Really Dies.
“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 writes.
This is Hugo’s second recent legal action against Williams, following his 2024 lawsuit accusing Williams of fraudulently seeking sole control of the Neptunes name—a case still pending before a federal trademark tribunal. A rep for Williams has released a response to the latest lawsuit, claiming that a “standard accounting review is already in progress.”
“The lawsuit filed is premature as there may not even be a dispute between the parties,” the rep said. “If the accounting review determines that money is owed, the appropriate party will pay it. Pharrell has consistently acted in good faith. He has great respect for Chad and looks forward to resolving this in a way that honors their shared history.”
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