The `Girls (Who Rule The World)` singer is said to have ruined Christmas 2010 for employees of video game company Gate Five, after she demanded more money to appear in dance game `Starpower: Beyonce`.
Her alleged decision also caused the project`s main financier to back out and was, according to the lawsuit, "a bad faith breach of contract so callous that, on what appeared to be a whim, she destroyed Gate Five`s business, and drove 70 people into unemployment, the week before Christmas".
The game was in development for release for Christmas 2011, but the project had to be scrapped after an "extortionate demand for entirely new compensation" came from Beyonce`s team at a "crucial moment in the project`s development".
Gate Five CEO Dareh Gregorian added to the New York Post newspaper: "It was a very shocking and disappointing turn of events that no one saw coming, and now we`re all trying to pick up the pieces."
Representatives for the `Single Ladies` hitmaker have yet to comment on the case.
In another recent controversial business decision, Beyonce stopped using her father Matthew Knowles as her manager, in a mutual decision by the pair.
Matthew had guided his daughter`s career since she first began her career in girl group Destiny`s Child in the late `90s.
He said in a statement: "Business is business and family is family. I love my daughter and I am very proud of who she is and all she has achieved. I look forward to her continued great success."