Adrenalina Inc. filed the lawsuit, saying it made a deal with Gomez that it would create fragrance products using her name and image. The company said it spent more than $2 million on marketing alone, TMZ reported.
Adrenalina said Gomez and her agent ended the relationship with the company and refused to show up for promotional events.
The company said it is suing for damages and wants a court order preventing the pop star from pulling out of the deal.
Gomez's attorney, Michael Weinsten, said he plans to counter sue.
"Any claim that Selena did not meet her promotional obligations is ridiculous, manufactured after Adrenalina was terminated. Selena will vigorously defend this lawsuit, and will soon bring her own lawsuit against Adrenalina for millions in damages," he said.