The festival organisers Future Sound Asia have claimed that they received a "a pre-show written assurance" that the band's set would follow "all local guidelines and regulations".
They have claimed that The 1975's frontman Matt Healy used "abusive language, equipment damage and indecent stage behaviour", causing the three day festival to be cancelled.
During their live set at Kula Lumpur, Matt Healy made a speech to the audience about homosexuality, which is illegal in the country, before proceeding to kiss bassist Ross McDonald on stage.
The festival was subsequently cancelled, meaning that acts The Strokes and The Kid Laroi did not perform, with The 1975 blacklisted from the country under a body which deals with foreign acts playing in Malaysia, according to the Malaysian Ministry of Communications and Digital.
While they did not specify an amount, FSA released a statement claiming against The 1975, calling on them to "acknowledge their liability and compensate FSA for damages incurred".
Following this, the lawyer representing the organisation Mr Dave Mathew has claimed for damages worth £2,099,154.54. In a statement, the legal team said the following.
"They entered into a binding contract with Future Sound Asia to perform and the position of Future Sound Asia, among others, is that this contractual obligation was breached", Mr Mathew said. "Further, Mr Healy’s representative categorically provided a pre-show written assurance that Mr Healy and The 1975’s live performance 'shall adhere to all local guidelines and regulations’ during their set in Malaysia".
"Unfortunately, the assurance was ignored". Adding, "Future Sound Asia is taking action in response to The 1975’s breach of contract".
"Their actions have had repercussions on local artists and small businesses, who relied on the festival for creative opportunities and their livelihoods", he added. "In this connection, Future Sound Asia wishes to move forward in a way that will give the Malaysian community affected some closure".
Representatives for Mr Healy have yet to comment on the matter.
The 1975 have also cancelled two further tour dates at the Taipei Music Centre in Taiwan, and We The Fest in Jakarta, Indonesia.
