Investor threatens to sue Will Smith

A film investor is apparently threatening to sue Will Smith and Jada Pinkett-Smith over a failed movie project.

TMZ says that legal papers filed in Los Angeles on Friday claim the couple guaranteed financier David Grasso a return investment on a film that lost money and went straight to DVD.

However, the Smiths have stated that they are not liable for Grasso's loss.

"Although we normally shun this type of controversy, we felt compelled to respond to the baseless threats and absurd allegations put forth by Mr Grasso's counsel," a rep for the couple said.

Pinkett-Smith reportedly wrote the film's script.