The lawsuit also claims that Hill turned down $5m to play at the Coachella festival, without telling Michél about the offer, because the Fugees would not be top of the bill.
Michél also criticised Hill’s “chronic tardiness” for performances.
Hill’s statement added that she’s been “pushing through because I understood that Pras was under duress because of his legal battles and that this was perhaps affecting his judgment, state of mind, and character.
“Last year’s tour was put together to celebrate the 25th Anniversary of the album The Miseducation of Lauryn Hill. It was being planned whether the Fugees were involved or not.
“The tour was expanded to incorporate the Fugees because I found out that Pras was in trouble and would need money to aid his legal defense.”
Michél was found guilty in 2023 of illegal lobbying. US prosecutors said he had received more than $100m (£80m) from Malaysian billionaire Jho Low that was used in two efforts to influence US politics.
Hill added that Michél’s lawsuit “notably omits” that he was given an advanced overpayment of $3m for the last tour to pay off his legal fees.
He is yet to “repay substantial loans” that she gave him as an “act of goodwill”, she claimed.
Hill and the Fugees are set to play three dates in the UK next week, including a night at the o2 in London.
Michél’s lawyer said he will not be participating in the shows.
The Fugees were formed in New Jersey in 1990 by Lauryn Hill, Pras Michél and Wyclef Jean and their top hits include Ready or Not and Killing Me Softly.
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