Sally Hessnice performed Whitney Houston's "The Greatest Love of All" during an auditorium audition for the 2013 series and received a 'no' from Cowell and his fellow judges Kelly Rowland, Demi Lovato and Paulina Rubio.
However, Hessnice is convinced the televised version of her audition was tampered with, claiming producers distorted her voice to make her sound terrible.
She alleges the broadcast ruined her reputation as a professional singer and on May 22, she filed a complaint in Los Angeles Superior Court, demanding USD 2 million in damages for emotional distress, defamation, false light invasion of privacy, and gross negligence. She also wants an injunction to stop the use of her audition footage.
Hessnice has named executives at Cowell's production company "syco", as well as fellow production firms Fremantle and Blue Orbit, as "defendants".
The "X Factor" USA was cancelled in 2013 after three seasons.