Why does ATRL think that Meghan Trainor is a decent human being? She's not! Obesity is not something to be proud of. She WILL die of diabetes if she does not get her eating problems sorted out.
No matter if her contract is over, any label would be dumb not to get a 360 deal for Gags. Once she's been at that level, no one is going to pass up the opportunity to make more money on her.