Former Tool manager Ted Gardner is suing the Los Angeles band for breach of contract and fraud, seeking at least $5 million in compensatory damages.
Gardner represented the band from 1992 until this May, when he says he was wrongfully terminated. Earlier in the year, he had signed a new contract, which he described as "onerous," according to the Billboard Bulletin.
The suit, filed Nov. 22 in California Superior Court in Los Angeles, also names the band's publishing company and alleges that Gardner was not paid $500,000 in commissions.
Gardner, who co-founded Lollapalooza with Jane's Addiction frontman Perry Farrell, brought Tool in to appear on the festival's third round in 1993, helping build the success of its debut album, Undertow.
The rock outfit, which is now self-managed, will release a CD/DVD box set Dec. 12, including live songs and three new studio recordings.