The unnamed woman alleges she met David during one of his shows in January 2007 and was then invited to his holiday home in July of that year. She claims David "attacked her and sexually assaulted her" while threatening to kill her if she did not submit to what he wanted.
The woman claims she was assaulted by David two more times on the island before he returned home and reported the incidents to Seattle police.
Copperfield's lawyers say she has fabricated the incidents.
"This woman, who filed the lawsuit, has a history of lying... She has lied to law enforcement before and, as a result, had innocent people arrested based on a false accusation... she is incapable of telling the truth," a statement from his lawyers said.
“This lawsuit is extortion for money, plain and simple. Unfortunately, false claims like this only hurt the women who really have been abused, women who really need our help."