The 29-year-old socialite was sued Wednesday in Los Angeles for allegedly breaching a contract to promote and wear hair extensions manufactured by Hairtech International Inc.
The company is seeking $35 million in damages -- 10 times what it paid Hilton for her endorsement.
Spokeswoman Dawn Miller said in a statement Thursday that Hilton's attorneys have deemed the lawsuit is without merits.
Hairtech claimed Hilton did not wear the company's extensions as promised and missed a launch party in 2007 because she was in jail.