Fujifilm has sued Xerox for over $1bn (£750m) for alleged breach of contract after the US printer and photocopier abandoned a proposed $6.1bn merger.

Xerox called off the deal following pressure from billionaire activist investor Carl Icahn and Darwin Deason, two of the firm's biggest shareholders.

Fujifilm accused Xerox of engaging in “intentional and egregious conduct” after the photocopier company reached a settlement with Icahn and and Deason that handed control to new management, according to a complaint filed with the USDistrict Court in Manhattan.

Read more: Lucky escape for Fujifilm, as Xerox pulls out of sale

Fujifilm is also claiming a $183m fee from Xerox for terminating the merger, according to Reuters.

The transaction would have seen Xerox merge its business with a joint venture they operate with Fuji in Asia, handing Fuji majority control.

Xerox investors were to be paid a $2.5bn cash dividend as part of the deal.

Icahn and Deason argued that the merger undervalued Xerox. Deason also accused Xeroxs former chief executive, Jeff Jacobson, of arranging the merger to keep his job.

Jacobson stepped down last month as part of the settlement with Icahn and Deason.

Read more: Xerox boss resigns over troubled Fujifilm deal

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