A US federal judge has declined to dismiss a lawsuit brought by Reach Records, the Atlanta label co-founded by Lecrae, against Capitol CMG, Universal Music Group's Christian music subsidiary, over a collapsed acquisition deal. Reach alleges Capitol CMG agreed to buy the label in 2025 but then abandoned the deal shortly before closing, claiming the agreed price was too high. The ruling means Reach can proceed with its claims for breach of contract, intentional misrepresentation and negligent misrepresentation, rejecting Capitol CMG's argument that no binding contract had ever existed.

Judge Waverly D. Crenshaw Jr. of the US District Court for the Middle District of Tennessee issued his decision on 21 July, finding Reach had plausibly alleged an enforceable contract and its breach. According to the complaint, the parties signed a letter of intent on 8 August 2025 fixing the purchase price, completed five rounds of due diligence without any adverse findings, and exchanged draft purchase agreements through September with the price unchanged. On 12 September 2025, Capitol CMG president Brad O'Donnell reportedly told Reach the price was "too high" and the deal fell through, despite having earlier said UMG's investment committee had approved both the deal and the final price. Crenshaw wrote that if price truly remained an issue, Capitol CMG should have invoked a contractual price-adjustment mechanism rather than walking away entirely.