The lawsuit filed May 9 in the Circuit Court of DeKalb County, Ala., claims that in 2003 Mark Herndon was paid for his share of net merchandise sales during the band's "American Farewell Tour" before a final accounting was done.
The final accounting, the suit claims, found that "there were no net merchandise revenues as defined by the contract."
The lawsuit seeks to recover the money.
The four members of Alabama _ Teddy Gentry, Randy Owen, Jeff Cook and Herndon _ have not performed together live since the 2003 farewell tour.
The lawsuit, which names The Group Alabama Inc. as the plaintiff, also states that Herndon has demanded a payment of $65,047 which represents his share of an advance against anticipated sales of the "The Last Stand" CD, which was recorded live during the farewell tour and is being sold by Cracker Barrel restaurants.
Alabama contends in the lawsuit that this amount and Herndon's share of any future earnings should be withheld until the full amount Herndon was overpaid for merchandise sales is repaid.
Attorney Robert G. Wilson, who filed the lawsuit, said he could not comment.
Members of the band and Herndon's attorney were not immediately available for comment.
Alabama was inducted into the Country Music Hall of Fame in 2005. Their hits include "Tennessee River," "The Closer You Get" and "Song of the South."