C.L. Smooth Files Federal Lawsuit Seeking Recovery of Allegedly Diverted Music Royalties

NEW YORK - EntSun -- Corey Penn, professionally known as legendary hip-hop artist C.L. Smooth, has filed a federal lawsuit in the United States District Court for the Southern District of New York concerning the alleged unauthorized diversion and negotiation of music royalty payments belonging to him.

The lawsuit alleges that royalty payments issued to Penn through SoundExchange were directed to addresses he did not authorize and that checks payable to him were endorsed and negotiated without his knowledge or permission.

According to the complaint, Penn became aware of the historical account activity in 2026 while working to recover and administer royalties generated by his music. The subsequent investigation uncovered historical payment records and negotiated checks that form the basis of the action.

The lawsuit asserts claims including fraud and fraudulent concealment, conversion, breach of fiduciary duty, unjust enrichment, money had and received, and related equitable claims. Penn seeks damages, recovery of allegedly misappropriated funds, an accounting, and other appropriate relief.

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"For recording artists, the ability to know where their royalties are going and who is receiving them is fundamental," said Anthony J.M. Jones, Esq., founder of The Jones Firm and counsel for Penn. "Corey is seeking a complete accounting of his earnings and recovery of any funds that the evidence establishes were taken or retained without his authorization. We intend to follow that evidence wherever it leads."

The litigation comes as artists and their representatives increasingly scrutinize legacy royalty accounts, publishing rights, digital-performance income, and other revenue streams created over decades-long careers.

C.L. Smooth is one of hip-hop's most recognizable voices and is widely known for his work with Pete Rock, including recordings that have become enduring parts of hip-hop history.

The Jones Firm is a New York-based law firm representing clients in entertainment, media, intellectual property, business transactions, and litigation.

The allegations contained in the complaint have not yet been adjudicated, and the defendants are entitled to respond to the allegations in court.