The 'Little Red Corvette' singer has accused the company Capital Asset Protection of making two illegal withdrawals from his bank accounts in June for $105,949.14 (£66,168.62) and $10,278.94 (£6,419.52).
The company was collecting money for a lawsuit the singer lost in a music production contract suit, according to TMZ.
In the suit filing, Prince says a judge dismissed the judgement of the original court case, thus cancelling his debts to the company.
He is now suing Capital Asset Protection for $116,228.12 (£72,588.18), including interest.
Prince recently launched a Welcome 2 Chicago concert residency at the Chicago Centre.