The head of James Blunt’s US label Custard is suing Warner Music Group over unpaid royalties for the singer’s album ‘Back To Bedlam’.

Linda Perry has filed a breach of contract lawsuit and is seeking the payment of the royalties plus $5m (£2.5m) in damages.

The album was distributed by Warner subsidiary Atlantic Records and sold over 11 million copies.

A spokesman for Atlantic has denied the claims of the unpaid royalties saying that it has compensated Custard in accordance with a contract between the two companies.

The lawsuit claims: "Atlantic's wrongdoing follows the far too familiar scenario involving a large multinational corporate record company which takes advantage of a small, independent production company."

Warner Music Group spokesman Will Tanous countered by saying: "Custard has always been and will continue to be compensated in accordance with the terms of its contractual arrangement with Atlantic."

(by Daniel Melia)