Jimmy Flynt says his brother stopped paying him his $250,000 annual salary in 2009 as part of an effort to squeeze Jimmy Flynt out of the business.
Larry Flynt's publicist Victoria Hurley declined comment Monday.
Jimmy Flynt wants at least $20 million in compensation and damages in the federal lawsuit filed last week in Cincinnati.
In May, a federal judge ruled that Larry Flynt is the sole owner of his pornography company and his estranged brother is not entitled to half the business.
U.S. District Judge William Bertelsman said Jimmy Flynt provided no evidence he was ever a partner in the business.
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