Two original members of the band that became Busted yesterday launched an estimated £10 million High Court action alleging they had to give up rights to songs after "threats" against them.
Four of the songs became big hits for Busted but Owen Doyle, from Sheldon, Birmingham, and Ki McPhail say they never received a penny in royalties.
The pair say they were kicked out of the band after Richard Rashman became manager in March 2001.
Tim Penny, representing the pair, told Mr Justice Morgan that Mr Rashman informed them that their former band colleagues, James Bourne and Matt Willis, would continue to use the name, Busted, and there was nothing they could do about it.
The manager also said the new Busted intended to use the songs written by the four when they were in a band called The Termites, said Mr Penny.
He said the claimants were then put under "undue pressure" by the band's management team to release their claims to songs including Sleeping with the Light On, What I Go to School For, Psycho Girl and Year 3000.
"The pressure placed on the claimants consisted of repeated advice and threats that, unless they released their claims in relation to the group members' songs and in particular the four songs, they would be sued, Ki McPhail's parents would lose their home and the claimants would never work in the industry again."
The case that was launched yesterday involved a claim that Busted are liable for any damages and a demand for the band's accounts so that a figure can be worked out from sales of records and performances of the songs at the centre of the dispute.
This part of the action is set down for 15 days in court.
Mr Penny said his clients were in a band with Bourne and Willis from late January 2001 to October that year.
During that time they performed together and wrote the songs while trying to get a record deal with a major label.
He said their aim was to become "successful pop stars".
From March 2001 they signed with a professional management company and in April the band changed its name to Busted.
But in October Bourne and Willis said they no longer wanted to be a group with the claimants, said Mr Penny. He said Doyle and McPhail, who were 18 and 20 at the time, could not afford to instruct lawyers to advise them although they managed to register their interest in the songs with the Performing Right Society.
During this time, Busted recruited Charlie Simpson as a new member and the new band began negotiations with Universal Records which eventually signed them in March 2002.
Mr Penny told the judge: "It is believed that they obtained a very substantial advance payment from Universal, although this has still not been disclosed, and that the four songs were all included within the controlled compositions which formed part of the subject matter of the recording agreement."
Doyle and McPhail had signed an agreement with Busted that they had no rights or interest in the four songs.
Mr Penny said the pair were now seeking to set aside that agreement on the basis of undue influence and misrepresentation.
Mr Penny said his clients had signed the release agreement without being told that the four songs had been played to Universal which liked the songs very much.
They had also not been told that the band were offering their services to Universal under the name Busted and had been offered a lucrative record deal.
When negotiations over the four songs broke down at Mr Rashman's suite at the Intercontinental Hotel in London, a colleague of Mr Rashman, John McLaughlin, indicated that if there was no settlement, Ki McPhail would be sued, said Mr Penny.
McPhail is to give evidence that the pressure on him to relinquish his rights in the songs became "unbearable", said Mr Penny.