Pras Michel to repay $6.5M loan, sentencing delayed.

A federal judge on Thursday ordered Fugees rapper Pras Michel to repay a $6.5 million loan tied to his music rights but rejected a host of fraud claims in a related civil lawsuit, while Michel's separate criminal sentencing has been delayed after he underwent emergency surgery for colon cancer. The rulings and the medical development leave the artist facing financial and criminal consequences even as he recovers from treatment and pursues appeals.

In Atlanta, U.S. District Judge Steve C. Jones issued a final ruling in a suit brought by Open on Sunday, a finance firm that says it provided catalog financing to Michel. The judge found that Michel breached the loan agreement and therefore must repay the $6.5 million the company advanced, but he dismissed Open on Sunday's additional claims of common-law fraud and conspiracy to defraud through forgery. "This is a simple breach of contract case," Jones wrote, noting that Michel never contested owing the money.

Open on Sunday had alleged that what began as a proposed $5.1 million purchase of future Sony royalties was converted into a short-term $6.5 million loan after undisclosed tax liens were discovered. The company says Michel used...