The filing also claims Hilton missed a launch party for the hair extension line because she was serving a 2007 jail stint. The filing states the company's lost $6.6 million on the launch party alone, although a jury or judge will have to decide whether Hilton owes any money if the case goes to trial.
The company's asking for $35 million, which is 10 times what Hilton was reportedly paid under the contract.
The case isn't the first time Hilton's role as a pitchwoman has gotten her sued.
The producers of the film "Pledge This!" sued Hilton in 2008 in federal court in Miami, claiming she didn't properly promote the film. A judge ruled last year that she didn't owe the roughly $8.3 million it cost to the make the film, which played in fewer than two dozen theaters.
The court is still deciding how much, if any, of Hilton's $1 million fee for "Pledge This!" she may have to return to filmmakers.
The Associated Press contributed to this story.
