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The older label was not a real business, but a name used by three Chicago punk bands from 1981 to 1986: Big Black, the Effigies, and Naked Raygun.
The younger label was formed by Eazy-E and Jerry Heller in 1987. The label is being crediting at founding gangsta rap They signed local up and coming hip hop stars Dr. Dre, Ice Cube and DJ Yella, and a year later Eazy-E formed the band NWA. Above the Law, Bone Thugs n Harmony and JJ Fad later joined the label.
Eazy was diagnosed with AIDS and died in 1995. Ruthless Records is now a division of Atlantic Records.