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Baker reportedly claims that she contacted Madix in 2016 to discuss details on writing a book together, with the concept of a cocktail recipe from Madix's viewpoint as a reality star bartender at SUR in West Hollywood.
She also reportedly claims that Madix agreed to pay her 45 percent of the advance and royalties in addition to receiving a co-author credit on the publication, and alleges the idea for Fancy AF Cocktails was stolen in a "willful, malicious and fraudulent" manner.
"The allegations presented are false and frivolous," the couple told PEOPLE in a statement. "We will vigorously defend ourselves against these baseless claims."
A finalized version of the book proposal was completed by Baker in 2017 and the process was featured on Vanderpump Rules, according to the documents obtained by E! News.
The making of the cocktail book was a story line during several seasons of the hit Bravo show, and the pair ultimately hired Danny Pellegrino, host of the popular Everything Iconic podcast, as their cowriter. It was released in December 2019 and instantly shot up Amazon's best-seller list upon its debut.