Fred Durst and Limp Bizkit are suing one of the biggest record companies in the world ... claiming they are getting royally screwed out of millions of dollars in royalties and other profits.

According to a new lawsuit, obtained by TMZ, Fred and his band claim Universal Music Group has stiffed them on their share of royalties -- despite their music getting over 3 billion streams in the past two years alone.

In the docs, Fred and Limp Bizkit claim UMG did not have any intention of ever paying them royalties and may be screwing tons of other artists out of streaming money.

Fred and LB claim UMG designed and implemented royalty software systems that deliberately conceal artists' royalties and keep the money in UMG's coffers.

What's more, Fred and his band claim record deals they signed when they were just getting started in the 1990s screwed them out of boatloads of cash ... Fred says he also had agreements with record execs for 50/50 profit splits on certain musical ventures but never ended up collecting what he claims he was owed under the deals.

Fred also claims he was promised 10% of profits from Staind after discovering the band and signing them to a label under the UMG umbrella ... but he says his payments abruptly stopped on that deal in 2012.

All told, Fred and Limp Bizkit estimate they "easily" could be owed over $200 million ... and they are going after UMG for damages.