Martha Stewart and her company is accused of selling cheap booze with the Vampire Vineyard label. (Ivan Nikolov/WENN.COM)

Martha Stewart has been targeted in a new lawsuit over allegations she is sucking profits out of Vampire Vineyards wine company by producing low-quality counterfeits.

In a suit filed by bosses at the gothic-inspired wine firm, Stewart and her company is accused of selling cheap booze with the Vampire Vineyard label in a bid to tarnish the company's product and boost sales of her own wine range with E&J Gallo winery.

In papers obtained by TMZ.com, Vampire Vineyards chiefs state that the TV titan is out "to disparage and tarnish wine brands by portraying a mock label of Vampire Vineyards affixed to cheap, nondescript wine and spirits products."

The papers go on to state that the campaign is "malicious".

Stewart has lent her name to a range of Gallo wines since 2007.