The 'Chubby Checker' app for Hewlett-Packard's Palm OS platform allows users to guess the size of a man's penis.
The 'Twist' singer's lawyers are demanding half a billion dollars for causing "irreparable damage and harm" to Checker.
"This lawsuit is about preserving the integrity and legacy of a man who has spent years working hard at his musical craft and has earned the position of one of the greatest musical entertainers of all time," said attorney Willie Gary.
The Chubby Checker app was removed from all Palm and Hewlett-Packard listings in September 2012, reports WebOSNation.
However, an old listing of the app reads: "Any of you ladies out there just start seeing someone new and wondering what the size of there [sic] member is? … All you need to do is find out the man's shoe size and plug it in and … there is no need for disappointment or surprise."
The app was created by the now defunct studio Magic Apps.
Chubby Checker - real name Ernest Evans - trademarked his stage name back in 1997, and his lawyers claim that the app has potential to "blur and tarnish" his reputation, as it links his name with "obscene sexual connotation and images".
They added that people who have purchased the app "are being misled into believing that plaintiffs have endorsed defendant's app".
He is now seeking "all profits" amassed by the defendants connected with the Chubby Checker app - which reportedly is as high as $500m (£320m).
However, a response by software website TCPalm states that the $0.99 app has only been downloaded 84 times.
Chubby Checker scored big hits in the early 1960s with 'The Twist' and its sequel 'Let's Twist Again'.