The dispute is about her 2021 release, Something For Thee Hotties, which was classed as a mixtape.
It debuted at number three on the US Billboard’s Top R&B/Hip-Hop Albums chart in its first week of release.
In the lawsuit, filed on Friday, Megan’s team say the release “clearly meets the definition of “Album””.
In document seen by Radio 1 Newsbeat, it says 1501 wants to “tie [Megan] down” for its own “financial benefit”.
Her legal team believe the label want to keep her locked in her contract for longer, so they can profit from her sales.
Record deals are usually signed with an agreement of how many albums the artist will release before they can renegotiate or leave the label.
Public feud
This isn’t the first time Megan has had conflict with her record label.
In 2020, she started a previous lawsuit against 1501, claiming they were blocking her from releasing new music because she wanted to renegotiate the terms of her contract.
On Instagram Live at the time, she said: “When I signed, I didn’t really know what was in my contract.
“I was young. I think I was like 20, and I ain’t know everything that was in my contract.”
It has since been dropped, and the label allowed her to release music.
1501 boss, Carl Crawford, posted on Instagram on Tuesday referencing the resolved lawsuit from 2020.
https://www.instagram.com/p/CaSUl0buv8-/
Megan shared a screenshot of his post to her Instagram – which she has since deleted. She said Crawford “never know [what] is going on with business.”
“We are most definitely STILL IN COURT and YOU STILL GETTING SUED BC YOU OWE ME MONEY!
“I AINT NEVER BEEN PAID FROM 1501 IN MY LIFE!”
The new lawsuit isn’t seeking payment from 1501, except legal fees, only recognition that Something for Thee Hotties is an album.
What is an album?
In the lawsuit filed by Megan’s lawyers, it says: “‘Something for Thee Hotties’ clearly meets the definition of ‘Album’ under the recording agreement because it is not less than forty-five (45) minutes in length.”
According to the lawyers, a length of 45 minutes or more is the only requirement in Megan’s contract to define what constitutes an album.
The lawsuit says: “1501’s new position, taken months after the album’s release, is clearly a ruse in an effort to try to take further advantage of [Megan], at great expense and not in good faith.”
In the 2021 Grammy’s, Megan took home Best New Artist, and, along with Beyoncé, won Best Rap Performance and Best Rap Song for “Savage (Remix).
Newsbeat has contacted Megan Thee Stallion’s management, and 1501, for comment, but neither has responded.