The record company says the band still owes them three albums, but repudiated their contract in July.
Virgin Records is asking for a $30 million payout.
The band says that they cut the contract short because they have yet to be paid for any of their work, despite selling two million albums and surviving five regime changes at Virgin.
Their last album, A Beautiful Lie, was released in 2005. Their hit From Yesterdaywas named as one of Billboard's Top Ten Modern Rock Songs in 2007.
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