Powerhouse regional Mexican label Rancho Humilde is locked in a bitter legal dispute with one of its fastest rising acts, the California-based band Fuerza Regida.

Rancho Humilde filed a lawsuit in September accusing the band of breaching its record deal by unilaterally doing features for other artists and inking live performance contracts with Apple Music and Live Nation. Fuerza Regida countersued a month later, alleging the indie label withheld millions of dollars in royalties and tried to “sabotage” its success — including by leaving it off Latin Grammy Awards submissions.

The dueling legal claims, moved from a California state courthouse to federal court on Oct. 20, reveal a stunning breakdown in the relationship between Fuerza Regida and its longtime label home. The fight comes just as Fuerza Regida’s star is on the rise; the band made history in May when 111XPANTIA debuted at No. 2 on the Billboard 200, making it the highest-charting Spanish-language album ever by a duo or group.

Fuerza Regida, a quintet of regional Mexican hitmakers from San Bernardino, signed with Jimmy Humilde’s label in 2018. The band now puts out music via a joint venture between Rancho Humilde and its own Street Mob Records, with distribution by Sony Music Latin.

Rancho Humilde’s lawsuit is focused on exclusivity language in the label’s original record deal with Fuerza Regida, which allegedly entitled the label to a seat at the table and a cut of proceeds for all recording and touring contracts. According to Rancho Humilde, Fuerza Regida violated this deal by performing unauthorized features for other artists and not sharing the royalties.

The lawsuit lists 27 offending songs, including “Qué Onda,” Fuerza Regida’s Billboard Hot 100 entry from 2023 with Calle 24 and Chino Pacas, and “Modo Capone,” the band’s 2024 collaboration with Pacas and Drake that hit No. 11 on Billboard‘s Hot Latin Songs chart.

Rancho Humilde says Fuerza Regida also disregarded exclusivity by contracting directly with Apple Music this past summer for a live concert taping in Mexico City, as well as with Live Nation for U.S. tours in 2023 and 2024.

“[Rancho Humilde] has suffered damages, including, but not limited to, lost royalties, advances, fees, market-share and other compensation that should have been directed to Sony and accounted to [Rancho Humilde], lost shares of touring revenues [and] lost income from unauthorized deals such as the Apple agreement,” says the lawsuit. “The exact amount of damages is subject to proof at trial but exceeds $15 million.”

Fuerza Regida, however, tells a very different story in its countersuit. The band claims Rancho Humilde is actually the one who has breached their record deal by failing to pay millions of dollars in royalties and stonewalling audit requests.

The countersuit also says Rancho Humilde has engaged in “systematic financial malfeasance” by refusing to revert master recordings back to the band as required by the record deal, as well as by using “clandestine arrangements” with Live Nation to siphon off touring profits.

“In addition to its fraudulent schemes and systematic contract breaches, Rancho and its principal Jimmy Humilde escalated to a malicious campaign of active sabotage designed to destroy [Fuerza Regida’s] professional relationships and career opportunities within the entertainment industry,” reads the countersuit.

Fuerza Regida says that as part of this campaign of “sabotage,” Rancho Humilde requested that Sony remove the band from Latin Grammy Awards submissions in 2024, even though they had been a top-selling act that year.

Additionally, the countersuit claims Jimmy Humilde sent “threatening and intimidating text messages” to Apple’s head of Latin music in an attempt to “derail” Fuerza Regida’s live concert taping. Overall, Fuerza Regida is seeking at least $25 million in damages from the label.

In a statement to Billboard on Monday (Oct. 27), the band’s attorney Kenneth D. Freundlich says, “Rancho Humilde and Jimmy Humilde have for years engaged in brazen self-dealing, enriching itself at the expense of our client Fuerza Regida.”

“Rancho’s bad faith state court lawsuit against Fuerza was the last straw,” adds Freundlich. “After our removal, the disputes will air in federal court where Rancho must now respond to our detailed claims of wrongdoing.”

Reps for Rancho Humilde did not return a request for comment.

The Fuerza Regida fight is not Rancho Humilde’s only ongoing legal battle with top talent. Regional Mexican artist Codiciado, who was signed to Rancho Humilde as part of the ensemble Grupo Codiciado but has since parted ways and gone solo, sued the label in June, alleging it infringed his intellectual property by getting the rest of the band back together with a new act called Los Codicia2. Rancho Humilde has not yet responded to Codiciado’s claims.