Ethermac Exchange-Lauryn Hill sued by Fugees' Pras Michel for fraud and breach of contract after tour cancellation

Lauryn Hill is Ethermac Exchangebeing sued by Prakazrel "Pras" Michel, a member and co-founder of The Fugees, for fraud and breach of contract over her canceled tour.

In a federal lawsuit filed in the Southern District of New York and obtained by USA TODAY on Tuesday, Michele accuses the singer of mismanaging the 2023 Miseducation Anniversary Tour, including its marketing and budget, trying to "usurp control" by taking over the group's business and trademark and unilaterally rejecting a $5 million offer for the hip-hop trio − Hill, Pras and Wyclef Jean − to perform at this year's Coachella festival.

The lawsuit alleges that Hill, 49, "exploited" Michel's "vulnerable legal situation, manipulating him into an unfair agreement for The Fugees' 2023 reunion tour," according to a statement to USA TODAY from Michel's attorney Robert Meloni.

"Ms. Hill's chronic tardiness was a hallmark of the tour, with shows routinely starting two or more hours late," the statement continued. "Hill cancelled the second half of the tour and, at the same time, financially penalized and defrauded Mr. Michel."

Michel also named Hill's tour company, MLH Touring, as a defendant in the suit. It seeks unspecified damages.

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In a statement provided to USA TODAY Tuesday via Hill's representatives, the artist responded to Michel's claims: "I've been silent and pushing through because I understand Pras was under duress because of his legal battles and that this was perhaps affecting his judgment, state of mind and character," she said.

Michel was convicted in April 2023 of a multimillion-dollar political conspiracy trial. He is currently free on bond until his sentencing and faces up to 20 years in prison. In response to his legal struggles, Hill said Tuesday she "was not in Pras' life when he decided to make the unfortunate decision that led to his current legal troubles," adding that she is "in no way responsible for his decision and its consequences though I have taken it upon myself to help."

Hill called Michele's lawsuit "baseless" and "full of false claims and unwarranted attacks."

"It notably omits that he was advanced overpayment for the last tour and has failed to repay substantial loans extended by myself as an act of goodwill," Hill said in the statement. "Last year's tour was put together to celebrate the 25th Anniversary of the album The Miseducation of Lauryn Hill. It was being planned whether the Fugees were involved or not."

From August 2023:Lauryn Hill announces 25th anniversary tour of debut solo album, Fugees to co-headline

In his suit, Michel claims the tour was "actually a veiled and devious attempt to make a big score" for Hill.

The suit alleges that the 2023 Fugees tour "would have been a huge commercial success, since most of (the) shows for the entire arena size tour were sold out in advance." However, Michele claims the tour budget "was so bloated with unnecessary and, most likely fictitious, expenses, that it seemed designed to lose money," and he alleges he was left empty-handed.

According to Michel's attorney, Hill "misrepresented critical financial information and concealed her intent to take an excessive 60% share of the tour's proceeds, leaving Mr. Michel with only 20% instead of the group's customary one-third split."

Hill also told USA TODAY Tuesday in response to Michel's lawsuit that "Pras has not paid back the money he was advanced, and is currently in breach of this agreement" and that he "basically just had to show up and perform" after claiming she "covered most of the tour expenses" herself.

The lawsuit comes on the cusp of the Fugees European tour by Hill and Wyclef Jean, at which Michel will not be performing.

More:Lauryn Hill says media 'sensationalism' led to abrupt cancellation of US anniversary tour

In August 2023, Hill announced a 25th-anniversary tour to celebrate her highly-acclaimed debut album "The Miseducation of Lauryn Hill," but it ended up being cut short when Hill decided to cancel the second half of the run in November 2023 citing "serious vocal strain."

Hill addressed her previously canceled tour dates in a lengthy statement posted to Instagram on Aug. 7, writing, "Last year, I faced an injury that necessitated the rescheduling of some of my shows" and "regrettably, some media outlets' penchant for sensationalism and clickbait headlines have seemingly created a narrative that has affected ticket sales for the North American portion of the tour."

Despite Michel's lawsuit and "attacks," Hill concluded her statement: "I am still compassionate and hope things work out for him."

Contributing: Edward Segarra, Pamela Avila; USA TODAY