The former Democrat vice president and his partners agreed to sell Current TV to the Qatari-owned broadcaster last year.
Al Gore and other former shareholders in the company claim Al Jazeera America is trying to retain $65 million of the purchase money.
They have filed a lawsuit claiming the terms of the contract have not been honored.
Al Gore’s lawyer, David Boies, said in a statement: “Al Jazeera America wants to give itself a discount on the purchase price that was agreed to nearly two years ago.”
Al Jazeera bought Current TV in August 2013 from a group of shareholders including the channel’s former chief executive, Joel Hyatt. Other investors included Comcast, and the supermarket magnate, Ron Burkle, as well as Al Gore.
It is Joel Hyatt and Al Gore who are alleging fraud and breach of contract over the sale, lodging their suit at a Delaware court.
They say a portion of the sale price was placed by Al Jazeera into an account to be paid to them this year, but that the money has been withheld.
A summary of the case, released by Al Gore’s lawyer, stated that Al Jazeera America is “in express violation of the merger agreement”.
Current TV was originally designed as a progressive channel to counter conservative-leaning broadcasters such as Fox News.
Al Jazeera America has not commented on the lawsuit.
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