She charged $5 for the fashion accessories, and handed over $3 million to the relief effort through the sales, but on Friday (24Jun11) a law firm bashed in Michigan filed a class action suit against the star, accusing her of overcharging fans and making money through shipping costs.
Gaga is named as a defendant in the $5 million suit, along with a number of affiliated companies.
But her reps have now dismissed the allegations as "misguided" and insist the Poker Face hitmaker did not profit from the incentive.
A statement reads, "This misguided lawsuit is without merit and unfortunately takes attention away from the kind deeds of the fans around the world who are supporting the people of Japan.
"The entire $5 donation made with the purchase of each bracelet is going to support the disaster relief. No profit is being made on shipping costs. Sales tax charges were made in accordance with local legal requirements. Lady Gaga has personally pledged her own funds to this cause and continues to support the victims of the disaster."