In June, Steel Partners II and another investment firm requested that Tandycrafts hire an investment bank to assist in a sale or merger transaction, and the group nominated a slate to replace Tandycrafts' board.
In a press release Wednesday, Tandycrafts alleged that the Steel Partners group filed a series of misleading Schedule 13D reports with the Securities and Exchange Commission.
Tandycrafts says the Steel Partners group didn't disclose intentions to destabilize Tandycrafts, past violations of securities laws, or activities and agreements in respect to Tandycrafts.
In June, Mr. Lichtenstein said the investment group wants management to "immediately pursue a sale of Tandycrafts" to create value for the company's shareholders.
The company also seeks to prohibit the group from voting its Tandycrafts shares and the forced liquidation of shares it allegedly acquired unlawfully.