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Kanye West Dodges $7.1 Million Lawsuit From Production Company But Can’t Avoid Lawsuit Filed By GAP for $2 Million

Kanye West may have mounting legal troubles, but he’s getting a bit of relief as of late, with one production company dropping its $7 million lawsuit against the former billionaire.

LOS ANGELES, CA – MAY 13: Kanye West on May 13, 2023 in Los Angeles, California. (Photo by Rachpoot/Bauer-Griffin/GC Images)

Court documents retrieved by reveal that Phantom Labs dropped all claims against West. 

A Look At The Lawsuit

Phantom Labs filed a lawsuit in July 2022, demanding $7.1 million from West after the company said he failed to pay his invoices. In court documents, attorneys argued that Phantom Lab “faithfully performed” work to meet Ye’s creative demands while also using “countless hours of in-house talent” as well as providing several vendors with advanced payments.

From June 2021 to March 2022, Phantom Labs worked on several projects for West, including one of his well-known Sunday Service events, a listening party for the “Donda 2” album, and the Free Larry Hoover event in Los Angeles with Drake. 

“Event after event, Ye and his representatives promised that if Phantom continued work on the budgeted and approved projects, Phantom would be paid promptly for the balance and the new work,” attorney Howard King wrote in the lawsuit. “More recent events have made clear that defendants have no intention of paying Phantom. Despite receiving multiple demand letters from Phantom, defendants continue inexplicably to withhold payment.”

The company had begun working on a Coachella set before West canceled his appearance. West’s cancellations allegedly caused the company a financial strain, as unpaid invoices were mounting and the business already had begun paying vendors. By February 2022, West allegedly owed Phantom more than $7 million. 

As reported in Billboard, “Just weeks after promising to make Phantom whole from the reported $9 million payday he was to receive for performing at Coachella, Ye suddenly pulled out of the festival — not only reneging on promises to pay Phantom’s multi-million-dollar balance, but also saddling Phantom with an additional $1.1 million in Coachella-related cancellation fees and other expenses incurred doing work on Coachella at defendants’ request,” the lawsuit argued. 

Looming Lawsuits 

Phantom Labs’ initial lawsuit was established several days after news broke that West was being sued by high-end fashion rental service owner David Casavant’s archive. The company argued that West did not pay his invoices and also failed to return a dozen “rare, esteemed pieces.” 

An additional legal trouble remains, as the Gap is suing West for $2 million. 

According to TMZ, court documents reveal that the Gap is demanding West to pay for damages related to another case with Art City Center. The Gap believes that West is responsible for the discord present between the two companies. 

According to the lawsuit, after the Gap and West’s failed collaboration, West made unapproved changes to a Los Angeles rental property. The landlord of that property, Art City Center, wants the Gap to pay while the Gap wants West to pay, The New York Post reported.

Alterations West reportedly made to the space include erecting an exterior ramp in the east side parking lot; installing a tunnel in the lot; removing ceiling lights; building a wall and nixing three bathrooms, according to the lawsuit.

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