UnitedMasters, a record label, has initiated a lawsuit against former employees David Melhado and Michael Weiss, alleging that BigXThaPlug’s gold album, ‘I Hope You’re Happy,’ was the result of a clandestine agreement involving royalties and exclusive deals. The lawsuit, filed since 1999, centers on alleged preferential treatment granted to Xavier Landum, professionally known as BigXThaPlug, by UnitedMasters and its affiliated companies, including companies owned by Melhado Holdings LLC and MBW Music Group LLC. The core of the claim revolves around a 2025 executive producer agreement between BigXThaPlug and UnitedMasters, which allegedly stipulated that the company would receive a significant cut of the album’s profits, a percentage of which was to be allocated to BigXThaPlug’s personal accounts.
UnitedMasters contends that Melhado and Weiss, despite being employed by UnitedMasters, secretly crafted outside deals to collect funds from the artist’s music. The complaint alleges that these deals were not authorized by UnitedMasters and were conducted without the company’s knowledge or consent, thereby constituting a breach of contract. The lawsuit details that the agreement essentially granted UnitedMasters the right to ‘all the benefits and profits arising from or incident to [their] services,’ a clause seemingly designed to benefit the label’s bottom line.
The core of the dispute centers around a 2025 EP Agreement, which stipulated that BigXThaPlug would receive a one-percent royalty of the album’s earnings, plus a five-percent share of performance royalties. Weiss, who joined UnitedMasters in 2018 as a vice president of music and marketing, and Melhado, who joined in 2019 as vice president of music and marketing, are both implicated in the agreement. The lawsuit specifically accuses them of collaborating to create these outside deals, which deprived UnitedMasters of the full benefits and profits associated with the artist’s work.
The complaint details that the EP Agreements were entered into while Melhado and Weiss were employed by UnitedMasters, and that UM never authorized Melhado or Weiss to enter into these agreements or to profit from UnitedMasters’ relationship with BigXThaPlug. Furthermore, the lawsuit alleges that Weiss involved Jesse Morav, a direct supervisor, by falsely informing him that the company had approved a similar executive producer arrangement.
UnitedMasters seeks a jury to award damages, including legal costs, and order the defendants to return all of the royalties they allegedly received during the disputed period. The company also seeks repayment of compensation paid to Melhado and Weiss, punitive damages, legal costs, and other forms of relief deemed appropriate by the court. The lawsuit details that the dispute involves a successful project because ‘I Hope You’re Happy’ debuted at No. 7 on the Billboard 200 and later earned RIAA gold certification. BigXThaPlug is currently facing further legal trouble due to the arrest of Allen police, who arrested him last week and booked him into the Collin County Jail, where he’s charged with driving while intoxicated, possessing less than two ounces of marijuana, and unlawfully possessing a firearm.
The investigation into the arrest remains active, and authorities haven’t provided further insight into the circumstances surrounding BigXThaPlug’s arrest. The date of the arrest was particularly noteworthy, occurring exactly one year earlier on August 21, 2025, on South Great Trinity Forest Way, where BigXThaPlug was arrested on marijuana and firearm charges.
The incident also revealed that officers pulled BigXThaPlug over for lacking a front license plate on South Great Trinity Forest Way. The firearm charge is a Class A misdemeanor punishable by up to one year in county jail. The DWI and marijuana charges are Class B misdemeanors, which can carry as much as 180 days in county jail. The investigation also uncovered that BigXThaPlug was associated with an Arlington gang, and officers found 3.4 grams of suspected marijuana, and he later posted a $5,000 bond in that case.
BigXThaPlug was specifically arrested on August 21, 2025, on marijuana and firearm charges in Dallas, a location that coincides with the arrest of the alleged incident.
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Source: AllHipHop
