Following the sudden passing of music producer Tay Keith, Sexyy Red's label, Rebel, has addressed reports of an unresolved financial dispute concerning royalties.

The label confirmed that negotiations to finalize a royalty agreement with Keith were in their final stages before his death.

Reports had circulated that Keith had filed a lawsuit against Rebel in March.

According to court documents obtained by TMZ, Keith claimed he produced 13 songs for Sexyy Red in 2024, including her hit 'Pound Town,' and had not received payment for his work despite the songs generating significant revenue.

The lawsuit also alleged that the label refused to provide an accounting of the revenue, preventing him from collecting his share of royalties.

Keith reportedly sought court intervention to compel the label to release financial records, confirm outstanding payments, and award damages.

A representative for Tay Keith clarified to TMZ that the lawsuit was specifically against Sexyy Red's label and not against the artist herself.

The rep emphasized that Keith and Red maintained their friendship, with Keith considering her like a sister.

They were reportedly in the studio together working on new music just last week.

Attorney Dameka Davis, speaking on behalf of Rebel, issued a statement expressing Sexyy Red's grief over Keith's passing.

Davis highlighted that royalty negotiations are typically handled by labels, not artists, and that she had been working closely with Keith's legal counsel to finalize the agreement.

She reiterated that they were nearing a resolution to fully compensate Keith for his contributions.

The label is now expediting the finalization of this work with Keith's attorney to ensure prompt payment to his estate.

Despite the legal proceedings, Sexyy Red posted a heartfelt tribute to Tay Keith on Instagram, sharing photos and referring to him as her brother and the best duo.

Tay Keith passed away on Thursday, June 18, after being found in his apartment by the Metro Nashville Police Department during a welfare check.

The cause of his death has not yet been confirmed.