The singer filed a lawsuit claiming that Sony Music Entertainment took improper and duplicate recoupments, which resulted in royalty underpayments, according to The Hollywood Reporter.
The lawsuit also alleges that Sony refused to share any of the profits from lawsuit settlements with websites such as Napster.
Sony has yet to respond for comment.
In July 2011, Yankovic confessed that he was disappointed that his latest LP Alpocalypse hasn't sold as well as previous work.
The singer, who is known for his parodies, recently reworked various Lady GaGa songs, including 'Born This Way' and 'Poker Face'.