Hall formed Sugarland in 2002 with Jennifer Nettles and Kristian Bush, and was co-writer of many of the group’s early hits. Hall left the group in December 2005 after the band's debut album Twice the Speed of Life. Nettles and Bush released a statement that “Kristen has decided that she wants to stay home and write songs, and we support her in that decision." However, rumors swirled that Hall was forced out for image reasons, or that she was paid to leave.
In July 2008, Hall filed a lawsuit for $14 million against Nettles and Bush in the U.S. District Court in Atlanta. She claimed "I started the band, I named the band," and that she bankrolled much of the group's debut album on her credit cards. The case was settled in November 2010.