Capone released his solo debut album Pain, Time, and Glory, later the same year. In early 2005, Def Jam released Capone from his contract while retaining N.O.R.E. Capone-n-Noreaga have denied any involvement in the shooting, for which the group was not charged. Later that year, the duo found itself implicated in a non-fatal shooting between rival hip-hop groups, one of which included fellow Brooklyn-based rapper Lil' Kim, after a chance encounter outside New York radio station Hot 97. A compilation of several tracks was released in 2004, entitled 'What Up 2 Da Hood Thugged Out', The single failed to make an impact, and the album was ultimately shelved. The duo recorded a new album in 2003, titled New Religion, with a lead single ' Yes, Sir,' which was issued on mixtapes and promoted with a music video. As Tommy Boy retained the rights to the names Capone-n-Noreaga and Noreaga, because the company claimed that the duo owed it more recordings, the group shortened its name to CNN, and Noreaga billed himself as N.O.R.E. Soon after, in 2001, Capone-n-Noreaga jumped ship to prominent label Def Jam.

Additionally, Capone had once again been sent to prison before its release for violating a probation sentence on gun possession, which undermined promotion of the album. The album was similarly star-studded but suffered from mixed reviews. In 2000, the group released The Reunion, their second album on Tommy Boy Records. The album was met with critical and commercial acclaim it also saw the group partake in the conflict between Death Row Records and Bad Boy Entertainment, making it a more widespread East Coast/West Coast rivalry, responding to West Coast hip hop duo Tha Dogg Pound's single ' New York, New York', with their own rendition of ' L.A L.A'. In 1996, before the group's debut album was completed, Capone was jailed for a parole violation, and Noreaga finished their debut album The War Report, with the help of various fellow New York City hip-hop acts, including Mobb Deep and Tragedy Khadafi. In 1996, the duo secured a recording contract with Neil Levine's Penalty Recordings. In October 1995, Capone-N-Noreaga appeared in The Source magazine's 'Unsigned Hype' column.

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