Carey's lawyers say her pay-out was closer to $50m

Both parties had issued a joint press release saying the contract had been "cancelled".

But EMI then followed London Stock Exchange rules by disclosing the deal in a separate announcement hours before Americans were awake, saying the contract had been "terminated".

Carey's lawyer Marshall Grossman said that was "deplorable".

"We are appalled that EMI would deal so cavalierly with these issues and do so less than 24 hours after the parties had finalised their agreement and settled the exact terms of the joint press statement," he said.

'Consistent'

But EMI's lawyer, Bert Fields, said the label had done no wrong.

"Certainly, it was not EMI's position that Ms. Carey was fired or anything like that, and there was no intention to create that impression," he added.

Mr Grossman also questioned the amount EMI is paying to release Carey from her contract.

The record company said it was $28m, but her lawyers argue that the amount does not take into account the $21m (�14.7m) Carey kept for making the failed Glitter album, minimising the losses suffered by EMI.

Mariah's film Glitter was a big flop at the cinema

The music giants are threatening to counter-sue the singer, if Carey's lawyers go ahead with court action.

Mr Fields said: "We will file a cross-complaint saying Ms Carey's representatives were making a lot of inflammatory statements around the world on Thursday which go way beyond the agreed press release."

This news comes at a bad time for Carey who is still recovering from a turbulent 2001.

She suffering an emotional breakdown which led her to check into a clinic to recover. The singer was placed in psychiatric care in August after suffering from "extreme exhaustion".

Her first major film, also called Glitter, was postponed until she was well enough to promote it.

But bad reviews ensured it did not recoup its money at the box office.

The movie, which cost $22m (�15.4m) to make, made just $4m (�2.8m) back in its US run.