but him catching a case while under their employment is another story. They will just let dude ride out the justice system and if he gets off they'll be right back to exploiting him. He's not valuable enough to be attached to and for them to provide backing to him at this point though. They're just keeping their names out of it.

They also probably don't think he will make them much money beyond the hit single so why bother investing more?

This is no different then when teams release a player who catches a case. They want to distance themselves from it altogether. The difference here is that once the shit dies down they will still have the option of continuing his contract should they choose.

Edit: We actually don't completely disagree. Money is definitely part of it but it's deeper than the 200k they would have to put up to bail him out. They probably weighed whether it was worth investing in bailing him out and backing him while he goes through all this and figured it wasn't worth it. They already cashed out on his hit single.