Teri Hatcher hits back at claims she broke her contract with cosmetics firm

Teri Hatcher has hit back at claims she broke her contract with a cosmetics firm by threatening legal action of her own.

Hatcher, 42, is being sued by skin care company, Hydroderm for allegedly endorsing a rival company's product.

But the Desperate Housewives star is fighting back claiming the accusations are false, saying the company was mismanaged and stating she has  been left out of pocket too.

Hatcher's attorney, Alan Wertheimer released a statement today (5 December) saying: "The allegations of this lawsuit are totally false and completely without merit. Despite having to deal with a frustrating series of changes in the ownership and management of Hydroderm over the last several years, Teri Hatcher has more than fully complied with all of her contractual obligations over the course of the relationship."

Wertheimer added: "Clearly, Hydroderm has embarked on this unjustified and public assault on Teri Hatcher's name, reputation and celebrity in a transparent effort to distract from it's own failure to live up to the end of its agreement.

Ms. Hatcher will respond swiftly and decisively by appropriate legal means to recover everything she is owed under her contract, as well as compensatory and punitive damages for Hydroderm's outrageous accusations; however she will not ligitate this matter in the press, as Hydroderm apparently seeks to do."

The Desperate Housewives star is believed to have broken her contract with skin care company Hydroderm by advertising City Cosmetics product, 'Lip Plumper.'

Hydroderm, who paid Hatcher $2.4 million to be the face of their campaign in 2005, claim they inserted an anti-competition clause into the contract to stop Hatcher working for a rival company.

Despite the clause, Hatcher is said to have endorsed the City Cosmetics product before and after the Hydroderm agreement, including posing for pictures with the product and identifying herself as a fan.

The lawsuit states the City Cosmetics product is in "direct competition" with Hydroderm's lip enhancer.

Hatcher, 42, is one of the highest paid television actresses in the United States.

She reportedly earns $285,000 per episode of the popular drama Desperate Housewives.