The comic book legend alleges he was coerced into a fraudulent sales agreement when he was in an emotionally and physically fragile state.

The complaint, filed in LA on Tuesday, claims Pow! Entertainment made Lee, 95, sign over his name and image rights.

Pow! later issued a statement insisting that Lee had "clearly understood" the terms of the agreement.

"The allegations are completely without merit," a company representative told the Hollywood Reporter.

"In particular, the notion that Mr Lee did not knowingly grant Pow! exclusive rights to his creative works or his identity is so preposterous that we have to wonder whether Mr Lee is personally behind this lawsuit."