However, they have decided to "amicably part ways," as reported by Billboard. "Megan and 1501 mutually reached a confidential settlement to resolve their legal differences".
No information on the agreement's specifics has been disclosed.
Carl Crawford, CEO of the record label, issued a statement saying he and the rest of the firm "wish Megan the very best in her life and career."
The 28-year-old admitted in 2020 during an Instagram Live broadcast that she "didn't really know what was in [her] contract" at the time.
"I was young. I think I was like 20, and I ain't know everything that was in my contract," she said.
Megan had filed a lawsuit in the past, alleging that 1501 refused to acknowledge "Something for Thee Hotties," released in 2021, as an official album. This was significant because her contract required her to produce three albums. In return, the record label counterclaimed that the project did not meet the requirement because it contained only 29 minutes of original material.
In December 2022, a judge ruled that a jury trial would be necessary to settle the dispute, although the trial was indefinitely postponed.
In 2021, she sued 1501 again because of a disagreement over what constitutes an "album."
Last week, Megan hinted that she was an independent artist, saying she didn't "want to sign to a new label right now because I just want to do it myself."
"I have no label right now and we're doing everything funded straight out of Megan Thee Stallion's pocket so the budget is coming from me," she stated during an Instagram Live. "I'm so excited to be doing something for the first time independent since it was just me and my momma."
"It's really just me until we sign to a new label."
