Larry Sherman was originally a collector of vintage jukeboxes, and, frustrated with the limited range of records began operations in 1983 by purchasing Musical Products, a pressing plant in Bridgeport, Illinois.Though it is frequently said that Jesse Saunders and Vince Lawrence were co-founders there is no proof via corporations or any type of genuine documentation to prove it.

Some of the current artists she has been releasing include Saytek, Late Nite Dub Addict, Irene Michaels, DJ THADX, along with productions and music by Chicago House legend Joe Smooth.

DJ Pierre of Phuture once claimed “Trax never paid me royalties”, and Jamie Principle, who sang "Your Love", alleged he was not properly signed to the label, saying they “literally just stole my stuff”.

[citation needed] The plaintiffs “signed away valuable rights to their music” for inadequate compensation, the filing proceeds, and Trax Records nevertheless failed to pay the owed royalties and wages.

[citation needed] Trax asserts and Heard admits that he signed a contract assigning the copyright in the music for his three biggest hits, Can You Feel It, Washing Machine and Beyond the Clouds.

Heard closed four contracts with the brand around 1985–1987, and though the lawsuit describes various issues and omissions with each (including missing signatures and not covering copyrights specifically), they centered mainly on his transferring the rights to hit songs for $3,000 apiece and, in a portion of the deals, a guarantee of 15 percent of sales revenue.

More broadly, the label allegedly “exploited the artists’ other musical works” without permission (contractual or otherwise) throughout the last four or so decades, including by releasing unauthorized vinyl records and failing to turn over royalty payments.

The Chicago native's much-publicized quest to collect 34 years worth of back pay from Trax, writing that he still hasn't “received one word from that shameless label.