Richard Carpenter, the surviving member of his famous band, the Carpenters, knew exactly where to go after settlement negotiations broke down between him and Universal Music Group. Carpenter has filed a lawsuit against UMG on his own behalf, and on behalf of the estate of his dead sister and former bandmate, Karen Carpenter, for unpaid royalties. The lawsuit alleges that UMG owes over $2.3 million in unpaid royalties to the group, and that's only going back to 2008.
The bulk of the unpaid royalties come from digital downloads, which UMG allegedly handled as if it were the sale of a physical record or other album, rather than a type of license. In 2010, the Ninth Circuit ruled in a case for the artist Eminem that downloads should be treated as licensing deals. Unfortunately for UMG, the Carpenters' contract called for a much higher royalty for licensing deals than album sales.