The latest developments form part of wider proceedings initially taken by Switzer amid allegations about Flatley’s financial affairs.
He has now formally terminated the 2024 service agreement at the centre of the legal row and brought a counter action.
The company claimed he had put the 268 performances of Lord of the Dance, booked across Europe and North America, in jeopardy.
The court had also previously heard Flatley had received nearly £430,000 in royalties during a 15-month period, since the deal was signed.
But the arrangement began to break down when he “went on a solo run” towards the end of 2025.
This was in a bid to restructure what had been set up, it was contended.
Further concerns were raised that another businessman who holds rights to music featured in the show could pull the plug on shows if there is any default on repayments of nearly $3m (£2.2m) owed to him.
A letter sent by Flatley’s former financial adviser, examined during the hearing, alleged he has a history of running tours at a loss and liquidating companies.
The letter stated: “Many promoters were reluctant to deal with Michael directly as he has an industry-wide reputation for not paying his bills.”
It was also claimed that Flatley has feigned ignorance or a lack of understanding to avoid debt obligations.
The financial adviser stated that he has used other people’s money to maintain a false display of wealth.
“Since 2019 Michael has lived the lifestyle of a Monaco millionaire without the funds to do so,” the letter alleged.
“In the bluntest terms he was faking it on a multi-million euro scale.”