Current TV filed the lawsuit Friday in Los Angeles and also asked a judge to rule the former host is not entitled to any more money from the network.
The complaint says the network paid the "Countdown" host the most he received in his career, and rejected Olbermann's claims that the network engaged in shoddy production, including what he called "terrible sound and filming" of the show, guests who were abruptly dropped from the air, busted teleprompters and an earpiece that repeatedly malfunctioned.
The filing accuses Olbermann of "an utter disregard" for his contract. The suit also says OIbermann's claims have damaged the network and it will lose money as a result of having to firing him.
Current TV is seeking unspecified damages.
Olbermann was fired March 30 and replaced with a new program hosted by former New York Gov. Eliot Spitzer. Olbermann came to Current last June after a stormy eight-year stint at MSNBC, his second at that network. The at-times volatile host abruptly left MSNBC in January 2011.
The Associated Press contributed to this report.