According to TMZ, Team Productions requested a discount, citing Bieber's lack of online promotion, and although negotiations began, the singer pulled the plug on the event on the morning of the gig.
Bieber then took to Twitter to apologise to fans and call out the party promoters, blaming their lack of professionalism for the cancellation.
Team Productions executives claim Bieber's comment has cost them big business and now they're suing for at least US$650,000 in damages.
News of the lawsuit emerged hours after Bieber had to say sorry to fans for excluding Argentina from his Purpose World Tour.
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Bieber claimed he's been banned from performing in the country. He didn't provide a specific reason for the ruling, but the decision may link back to a previous show the singer put on in Buenos Aires in 2013, during which he kicked the national flag off the stage.
At the time, government officials accused the star of desecrating the flag, and during the same visit, a warrant for the 22-year-old's arrest was issued after a photographer claimed he was attacked by the pop star's bodyguards outside a nightclub.
The arrest warrant was revoked but the charges were not officially dismissed, according to The Associated Press.
- WENN