12:41 PM PT -- 9/10 A rep for MC Lyte now tells TMZ ... Smith grew impatient during the film project and demanded payment. The rep claims they reached a settlement agreement ... so long as Smith transferred ownership of his work -- some illustrations.
As far as the check bouncing ... the rep says it was a stop payment on the check because Smith failed to produce the files. The rep adds, "Mr. Smith's frivolous lawsuit is smoke-and-mirrors and a misguided attempt to publicly harass and intimidate MC Lyte and Sunni Gyrl."
8:19 AM PT -- 9/10 -- Christopher Smith's attorney tells TMZ the work he was allegedly stiffed on was for a film. He claims they originally entered a settlement agreement for the unpaid wages but, when that check bounced, they filed suit.
As Far as MC Lyte goes, she has no comment.
MC Lyte hired an artist to work with her on a project, but never paid him for his contributions ... this according to a lawsuit.
In legal docs obtained by TMZ ... Christopher Smith claims he was hired as an artist, animator and writer on a project for MC Lyte's entertainment management and production firm, Sunni Gyrl, but he says he was never paid for his 1,228 hours on the job. He claims he's owed a total of $38,375.
In the docs, Christopher claims after he was let go from the project, MC Lyte and her biz partner Lynn Richardson sent him a check for $11,250 ... but he says it bounced.
Now, Christopher is suing MC Lyte, Richardson and Sunni Gyrl ... and he wants the cash he claims he's owed.
We reached out to MC Lyte for comment ... no word back, so far.