Drake’s OVO label faces lawsuit, Authentic reportedly eyeing stake acquisition

October’s Very Own (OVO), the lifestyle and apparel label co-founded by rapper Drake, is facing a lawsuit over allegations of partial debt repayments and contractual breaches. The claims have been made by A.R.I. OVO Growth Capital, which said despite previous attempts to resolve legal issues, it now sought to enforce its rights and protect investors.

The investment firm, which commenced litigation in the Supreme Court of British Columbia, is seeking the recovery of around 4.6 million dollars in relation to owed funds, contractual default interest, legal fees and other expenses.

A.R.I. established a financing agreement with OVO in early 2025, injecting funding via separate transactions, including a senior secured credit facility and convertible promissory notes. The firm said it had initially viewed the globally-recognised brand as an attractive credit opportunity with substantial value enterprise potential.

OVO was founded in 2008 by Aubrey ‘Drake’ Graham, Oliver El-Khatib, and Noah ‘40’ Shebib, and is currently helmed by chief executive officer Derek ‘Drex’ Jancar. The brand sits within the premium lifestyle and luxury streetwear segment, and has become known for its activations across fashion, music, and sports.

Tensions heighten following acquisition rumours and equity raising efforts

In February 2026, however, OVO was alleged to have defaulted under the governing agreements after failing to repay debts on time. A.R.I. said it had worked to remedy the situation outside of court and ultimately entered into a forbearance agreement in which OVO approved the validity of unconditional payable obligations.

In a statement, the firm noted that it had “worked extensively with OVO through a formal workout process and provided the company substantial time and flexibility to resolve the situation outside of court”.

By May, A.R.I. claimed to have received a wire payment of around 3.8 million dollars transferred from a third-party account, making up part of the 4.6 million dollars owed. According to the case filing, however, OVO is alleged to have taken a stance that no further payments are withstanding.

Concerns over the deal were heightened upon A.R.I. learning of OVO’s reported efforts to secure a 30 million dollar equity financing transaction, which it said may be used to repay approximately 10 million dollars of indebtedness. The company is also believed to be facing approximately 12 million dollars in cumulative losses between 2022 and 2024.

A.R.I. further pointed to a recent report by media platform Puck that suggested OVO was mulling a transaction with Authentic Brands Group, which is believed to be considering the acquisition of 50 percent ownership. The investment firm said such discussions should have been disclosed as part of the contractual agreement.

FashionUnited has contacted OVO and Authentic Brands Group with a request to comment.