In a developing story that intertwines music and legal disputes, UnitedMasters has filed a lawsuit against former employees David Melhado and Michael Weiss, alleging they orchestrated unauthorized side deals related to BigXThaPlug’s acclaimed album, “I Hope You’re Happy.” This legal action marks a significant chapter in the ongoing narrative surrounding the Dallas rapper, who recently made headlines following his arrest.
The lawsuit, which also names Melhado Holdings LLC and MBW Music Group LLC, claims that Melhado and Weiss improperly established agreements that allowed their companies to profit from the artist’s work while they were employed at UnitedMasters. Notably, BigXThaPlug himself is not named as a defendant, nor is he accused of any wrongdoing in the matter.
According to the complaint, Melhado and Weiss allegedly created secret side deals to award themselves a portion of the proceeds from “I Hope You’re Happy,” which has achieved gold certification. These actions are said to violate their employment agreements, which stipulated that all profits and benefits derived from their roles at UnitedMasters belonged to the company.
The lawsuit outlines that both Melhado and Weiss signed employment contracts in 2021, which restricted them from engaging in any outside professional services without the company’s approval. However, the two men reportedly entered into executive producer agreements with BigXThaPlug LLC on August 6, 2025, while still employed at UnitedMasters. The agreements purportedly entitled them to a percentage of royalties from the album, a clear breach of their contractual obligations to the company.
UnitedMasters asserts that the duo’s actions deprived the company of rightful profits and seeks damages, including the return of any outside compensation received during the disputed period. The complaint also highlights Weiss’s alleged involvement in misleading another employee, Jesse Morav, into believing that similar arrangements had been authorized for him by the company.
The lawsuit adds a layer of complexity to the already successful project, as “I Hope You’re Happy” debuted at No. 7 on the Billboard 200, showcasing BigXThaPlug’s significant impact in the hip-hop scene. As the legal proceedings unfold, UnitedMasters aims to hold Melhado and Weiss accountable for their alleged misconduct, seeking both punitive damages and reimbursement for the financial losses incurred.
As the case progresses, it serves as a reminder of the intricate relationships and potential pitfalls within the music industry, particularly in managing artist contracts and employee conduct. For more updates on this case and other celebrity lawsuits, keep an eye on hiphopraisedmetheblog.com, where we bring you the latest developments in the world of hip-hop and entertainment.
