Rap group UNLV is charging that Cash Money Records has failed to pay royalties owed to the group for several albums released by the label.
The group announced that if the record label misses their deadline for payment of royalties to the group, they would proceed in taking legal action.
The New Orleans-based group remains hopeful that an out-of-court settlement may be reached.
"We now join such artists as Juvenile, Mannie Fresh and B. G., who have sued Cash Money for payment," said Ronald Bell, the spokesman for UNLV. "UNLV sold a number of records from their past albums from 6th and Baronne to Uptown 4 Life, and we are simply seeking compensation which we are due."
The rappers have also charged Cash Money Records with falsely using their song "Go D.J." from their 1994 release Gutta 4 Life.
The group alleges the song became a hit when released by Cash Money rapper Lil' Wayne, on 2004 off his album Tha Carter.
UNLV officially inked a deal with Warlock/TVT records last week and are preparing to release their album, Gutta Muzik, in February 2007.
"We already have a full album ready featuring other artists such as Juvenile, B.G. and L'il Boosie," said Bell.