In a complaint filed Wednesday in Los Angeles, Singleton claims the studios did not come through in an agreement having to do with the distribution rights to the 2005 film, "Hustle & Flow."
The lawsuit claims the studios promised to finance and distribute two future Singleton productions within five years but added restrictions when he submitted the projects.
Paramount said that it "was hoping that John Singleton would produce two more pictures before his agreement with our studio ended in 2010, but that did not happen. Instead, he went on to direct 'Abduction' for Lions Gate."
Singleton is demanding a jury trial. Paramount says the suit has no merit.
The Associated Press contributed to this report.