Mel B will reportedly be sued for £500,000 plus interest over "fraud" and "breach of contract".
The company BMEDIA has filed a lawsuit against the singer, her husband Stephen Belafonte and their business partners.
It claims that they invested £500,000 in 2008 when the singer insisted that she would be releasing an album but then took on a role in Las Vegas production Peep Show instead.
BMEDIA is also suing for a 12.5% share in profits that were made by Mel B for her work in Peep Show and sales of her Totally Fit: Mel B exercise DVD.
Mel B and Belafonte are yet to comment on the lawsuit.
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