Mariah Carey Denies Ex-Manager's Sexual Harassment Claims: 'She Has Been Spreading False Rumors'

As the possibility of a legal battle looms for Mariah Carey and her ex-manager Stella Bulochnikov, the singer is hitting back at claims reportedly made by her former business associate.

“Stella Bulochnikov was terminated from employment as Mariah’s manager due to failure to perform her job effectively and ill-serving her client. Stella was not under contract for employment,” Carey’s rep tells PEOPLE in a statement. “She has been spreading false rumors to any media outlet that will publish them. We won’t respond to lies and threats.”

Lawyers for Bulochnikov did not immediately respond to a request from PEOPLE for comment.

After working together for nearly three years, Carey and Bulochnikov split ways last fall and released a joint statement at the time saying they remained “partners in a number of business ventures” and would “continue to support each other in those endeavors.”

However, Bulochnikov’s lawyers filed a summons in New York court last Friday alleging breach of contract and violation of the U.S. Civil Rights Acts.

According to reports by The Blast and TMZ, Bulochnikov’s lawyers claim Carey sexually harassed her by often being naked in front of her, struggles with substance abuse issues and owes her millions of dollars in unpaid commissions.

While Bulochnikov’s lawyers told The Blast they will be moving forward with the lawsuit if Carey doesn’t settle, Carey’s rep claims the potential suit is “frivolous and baseless.”

“We will defend against it vigorously and successfully,” continues the statement from the singer’s rep. “It is also interesting to note that this is the first lawyer who will move forward on Stella’s behalf, having previously gone through three others who wouldn’t.”

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Carey recently opened up exclusively to PEOPLE editor in chief Jess Cagle about her battle with bipolar disorder, which she was diagnosed with in 2001 after being hospitalized for a physical and mental breakdown.

Carey said she finally sought treatment recently after “the hardest couple of years I’ve been through” — years of professional upheaval, an E! reality show and romantic drama.

“Until recently I lived in denial and isolation and in constant fear someone would expose me,” said the singer, who is now in therapy and taking medication for bipolar II disorder. “It was too heavy a burden to carry and I simply couldn’t do that anymore. I sought and received treatment, I put positive people around me and I got back to doing what I love — writing songs and making music.”