Hollywood actress Teri Hatcher has dismissed a private company's claims she has not honoured the terms of a sponsorship agreement.

The Desperate Housewives star was recently sued by cosmetic manufacturer Hydroderm, which claimed she had been endorsing competitors' products in violation of their agreement.

The Firm claims the star promoted the beauty products of close to twenty other manufacturers, which was contrary to their deal.

Hydroderm has filed a lawsuit against Hatcher seeking to recover up to $2.8 million (£1.4 million) in payments and expenses from her.

Court documents show her denying the company's assertions and claiming the court proceedings were a result of the firm's "corporate paralysis".

Her legal team told the court: "The allegations of this lawsuit are totally false and completely without merit.

"Ms Hatcher has not entered into any agreement with any other cosmetic or skincare companies ... Ms. Hatcher has done absolutely nothing wrong and has been ready, willing, able and eager to perform."

07/12/2007 07:15:53