James Blunt’s Back to Bedlam is distributed by Warner Music Group subsidiary Atlantic Records.
However, a representative for Atlantic Records said that Custard had been compensated in accordance with a deal between the two labels.
Linda Perry and Custard Records’ lawsuit alleges that Linda Perry discovered James Blunt in 2003, signed him to her record label and then delivered his debut album Back to Bedlam to Atlantic, but that the label showed a "general lack of support" for the record.
The lawsuit continued by claiming that Atlantic had taken more than $100 million (£50 million) in sales from James Blunt.
Linda Perry has had hits herself as the former lead singer and songwriter for rock group 4 Non Blondes, and she has also written for and been the producer for top acts like Gwen Stefani, Pink and Christina Aguilera.
