The movie studio filed a lawsuit in Los Angeles Superior Court alleging that Scorsese had promised to make the film more than two decades ago but has been constantly delaying it.
Scorsese has called the lawsuit "shocking" and branded it "absurd", reported Aceshowbiz.
"It is shocking to us that the lawyers for Cecchi Gori Pictures would file a suit pursuing such absurd claims considering the amicable working relationship existing between Martin Scorsese and the principals of Cechi Gori Pictures," said director's representative Leslee Dart.
Scorsese's camp also accused the production company of doing a media stunt with the suit.
"The claims asserted are completely contradicted by, inconsistent with, and contrary to the express terms of an agreement entered into by the parties last year. The lawsuit filing on the eve of Mr Scorsese starting another picture has all the earmarks of a media stunt," Dart added.
