The 'Tik Tok' singer signed with DAS Communications in 2006 and in September 2008 she left to work with producer Dr. Luke and now the company has filed a lawsuit for breach of contract.
DAS claim Kesha had initially agreed to give them 20 per cent of her future income, with the option to sever the business if she did not land a major label record contract within a year.
Although she failed to pick up a deal within those 12 months, DAS insist they continued a good relationship with Kesha until she met Dr. Luke, who allegedly "induced, intimidated and convinced Kesha" to cut ties with them.
The legal papers added: "Although she has made an incredible amount of money in a very short period of time, in large part due to DAS' efforts on her behalf, she could just as easily lose money if not properly guided."
Ken Freundlich - who is representing DAS - said: "DAS was Kesha's manager since the beginning of 2006, and there was a written agreement, and they worked closely, and sometime in September 2008 Dr. Luke, for his own personal gain, somehow induced her to breach that contract. And she unceremoniously terminated DAS without justification and then ended up with Luke, basically.
"We're going to have our day in court. And we're going to prove that Dr. Luke induced her to breach the contract. She had no right to do so, and we're going get damages from her."
Her lawyer Charles Ortner said: "This lawsuit seeks to require her to pay DAS head David Sonenberg commissions on her RCA/Jive record deal that he had nothing to do with, long after she terminated him in writing."