Cali Swag District claims they were screwed by MC Hammer's brother, Louis Burrell, who pocketed more than $200k in royalties from the group acting as their agent.
The "Teach Me How To Dougie" rappers aren't suing Burrell though, at least not yet. Instead they're going after music licensing co. BMI, claiming it's responsible for putting their royalty checks in the wrong hands.
But when we got 'em at LAX -- on their way to a gig -- they laid out their inside job theory ... involving Burrell and a mole. They also had some advice for anyone getting into the biz.
For his part, Burrell tells TMZ he doesn't "owe any money to Cali Swag District. If they have an issue with BMI, resolve it with them."