In suing the Franklin Mint, the Diana, Princess of Wales Memorial Fund accused the company of profiting from Diana's death "like vultures feeding on the dead" and of "deceptive advertising" that indicated proceeds would go to "Diana, Princess of Wales Charities."

"In fact, defendants never donated a penny to the fund," the suit says.

The matter is pending in a Los Angeles court, and company spokeswoman Mona Astra Liss refuses to discuss the specifics of the case.

However, she notes that in June, the company announced it had given the court $2.5 million to be distributed to charity after the lawsuit with the fund has been resolved.

The company also announced that it had given another $1.5 million to the Great Ormond Street Hospital for Children in London, an institution with which the princess was closely involved.

The Franklin Mint is owned by Stewart and Lynda Resnick of Beverly Hills, California, and Liss says the Resnicks paid $151,000 for one of Diana's dresses when it was auctioned last year in New York. (Media reports put the price at $135,000.)

Liss said the princess called the dress -- a white, beaded-silk sheath with a bolero jacket -- her "Elvis dress," and the fund accuses the company of illegally marketing a "Princess of Wales Portrait Doll" wearing a replica of the dress.

The company is also being sued for selling a "Princess Diana Portrait Plate," a "Diana, Queen of Hearts Jeweled Tribute Ring," a "Diana, England's Rose Diamond Pendant," a "Princess Diana Tiara Ring" and a "Diana, The People's Princess Doll."