St. Lunatics Members Want Out of $50M Nelly Lawsuit, Leaving Only Ali

St. Lunatics Whoa, Nelly ... We Want No Part Of $50M Lawsuit The Beef Is All Ali's!!!

Nelly was recently sued by his former group St. Lunatics for $50 million, but now it appears only ONE rapper wants to continue pursuing the case -- Nelly's lawyer states the other 3 are saying they want out!!!

TMZ Hip Hop obtained a legal letter that was sent to the attorney who filed the lawsuit against Nelly, that states Murphy Lee, Kyjuan, and City Spud did not give authorization for them to be included in the lawsuit filed in mid-September.

The lawsuit is spearheaded by ex-Lunatics de facto leader Ali Jones, and it claims Jones and other St. Lunatics members have been shut out of royalties and profits from Nelly's Diamond-selling "Country Grammar" album and other various tracks.

According to the letter, Nelly's attorney N. Scott Rosenblum says the 3 St. Lunatics -- other than Jones -- recently retained him and are now demanding to be removed from the suit ... threatening legal repercussions.

Due to completely foreseen circumstances, we are losing our mind rn because Nelly just brought out @chingyfulldekk, J-Kwon, and St. Lunatics! 🤯 #AMAs50 pic.twitter.com/0TItzXn5PH
— American Music Awards (@AMAs) October 7, 2024 @AMAs

Our sources say the STL rappers were blindsided by the suit and are still tight with Nelly -- and they proved it on one of the biggest stages in music!!!

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Murphy Lee, Kyjuan, and City Spud joined Nelly during Sunday night's 2024 American Music Awards, where they performed a tribute to the evolution of hip hop.

Chingy, and Shaboozey's inspiration, J-Kwon, were there too. It's still a Midwest swang ... just without Ali!!!

We broke the story back in June ... Nelly cashed in just 50% of his classic-filled catalog, and there's no question Ali believes he's entitled to some of that money.

Last year on VladTV, he unloaded the chopper and emptied the clip at Nelly, accusing him of drug use, stealing, and overall being a lousy friend after they started in the rap game together.