According to reports, the singer had agreed to be represented by the unnamed agency to secure distribution for a book documenting his 21-date residency at London's O2 Arena in 2007.
The lawsuit, filed in Los Angeles County Superior Court on April 21, said that Prince chose the company as his "exclusive agent with respect to the negotiations of a publishing deal" for the tome, reports Contactmusic.
However, Prince has now been accused of cutting off all contact with the agency during the final stages of the talks, and sealing the deal behind their backs.
Reports by TMZ.com have revealed that the literary agents are seeking compensation for the 15 per cent commission they were due for setting up the deal, estimated at 200,000 dollars. (ANI)