|Charlie Sheen & Selma Blair|
According to reports on TMZ, Selma is demanding the payout to cover the episodes she would have made is she hadn't have been fired from the show.
It has been said she was kicked off the sitcom after she complained about the 'Two and a Half Men' star, claiming the crew had to wait while he was in his trailer learning lines.
However, an insider defended Charlie's actions because - whereas Selma was in less than half of the scenes for each episode - he would have to learn over 44 pages of dialogue.
The source added: "When you work 12 hours a day and have 3 girlfriends at home, it's hard to memorize all the lines for tomorrow."
While Selma is threatening to press on with her claim of wrongful termination based on retaliation, it is said she was already going to be phased out to make the show less dull.
Charlie previously said: "One of our primary characters, Selma Blair, who played Kate, was written out because [the show] was not about our relationship, and the problem was too many people were still excited about the 'Two and a Half [Men]' character and thinking the 'Anger Management' character was a little dull.
"So, um, that is not the case anymore."