In a lawsuit filed this week in Los Angeles, Carol Lee Shulman accused Garcia of "research without permission and marketing of life's events for profit without consent," TMZ.com reported Thursday.
The court papers said the 2005 film, which the Cuban-born Garcia directed, bears striking similarities to the life of Schulman's husband, Eddie "Shu" Shulman.
"The Lost City" is about a wealthy family torn apart by Fidel Castro's Marxist revolution.
Eddie Shulman was a saxophone player exiled from Cuba for freedom of expression after Fidel Castro took over in 1958. The movie casts Garcia as a nightclub owner who flees the Caribbean island after the dictator assumes power.
The suit demands $1.5 million in royalties and another $1 million for punitive damages.
A representative for Garcia was not immediately reached for comment by TMZ.