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Drake's OVO in $7.5M Legal Battle Over Loan
23 Jun
Summary
- OVO investor claims Drake's company owes double a $4 million loan.
- A default fee of $3.8 million is at the center of the dispute.
- Both OVO and the investor have filed lawsuits against each other.
Drake's apparel company, October's Very Own (OVO), is embroiled in a legal conflict with an investor over a recalled loan. The investor, Applied Real Intelligence (A.R.I.), is demanding double the initial loan amount.
Last year, A.R.I. provided OVO with a loan of approximately $3.7 million CAD. By early 2026, A.R.I. alleged OVO defaulted on the loan due to late interest payments. OVO subsequently repaid the principal amount.
However, A.R.I. claims OVO must also pay a make-whole fee of about $3.8 million CAD as a penalty for the default. OVO argues this fee is not contractually obligated under the circumstances.
On June 2, OVO initiated legal action in Toronto, seeking a declaration that the make-whole fee is not due. Subsequently, on June 11, A.R.I. filed its own lawsuit in Vancouver, aiming to compel OVO to pay the disputed fee, which they state protects their negotiated return.
