Drake’s OVO Sued Over Alleged $4.6M Debt After Investor Claims Company Defaulted On Loan

Drake

Drake’s OVO Sued Over Alleged $4.6M Debt After Investor Claims Company Defaulted On Loan

Drake’s lifestyle and apparel company, OVO, is facing a legal dispute with an investor over millions of dollars tied to a financing agreement. According to Billboard, Florida-based lender Applied Real Intelligence (A.R.I.) claims OVO defaulted on a loan issued in 2025 and still owes millions in additional fees and related costs.

The dispute stems from a series of convertible notes totaling approximately $3.7 million USD (about $5.2 million CAD) that A.R.I. provided to OVO during a 2025 fundraising effort. A.R.I. alleges the company failed to make required payments, leading to a default notice earlier this year.

According to the outlet, OVO later entered into a repayment agreement and wired roughly $3.7 million back to the lender in May. However, A.R.I. argues the company also owes an additional “make-whole fee” and other expenses that push the disputed amount into the millions.

OVO is pushing back. In a lawsuit filed in Toronto earlier this month, the company asked a judge to rule that it does not owe the additional fee. OVO contends the circumstances required to trigger that payment never occurred and says its repayment agreement with A.R.I. resolved the matter.

A.R.I. responded with its own lawsuit in Vancouver, seeking to recover what it says remains unpaid. The lender claims OVO acknowledged the debt and existing defaults in a formal forbearance agreement before making only a partial repayment.

OVO was co-founded by Drake, Oliver El-Khatib, and producer Noah “40” Shebib. Representatives for Drake and OVO declined to comment beyond the legal filings, according to Billboard. The competing lawsuits are ongoing.