Amy Cooper maintains in the suit that she called the police out of fear for her safety and that of her dog, and that the call was not racially motivated.
Franklin Templeton, part of Franklin Resources Inc, did not immediately respond on Wednesday to requests for comment.
In her federal lawsuit, Ms Cooper said Franklin Templeton, "nurtured" the idea of the confrontation last May as "a racial flashpoint, characterised as a privileged white female "Karen" caught on video verbally abusing an African American male with no possible reason other than the colour of his skin".
"Franklin Templeton's alleged investigation and results provided legitimacy to the "Karen" story, and appeared to provide justification for those who sought the destruction of the Plaintiff's life", says the lawsuit, which was filed in NY federal court on Tuesday and argues that she's the victim of racial discrimination.
"Even a perfunctory investigation would have shown that Plaintiff did not shout at Christian Cooper or call the police from Central Park on May 25, 2020 because she was a racist-she did these things because she was alone in the park and frightened to death after being selected as the next target of Christian Cooper, an overzealous birdwatcher engaged in Central Park's ongoing feud between birdwatchers and dog owners", the lawsuit alleges. "We will defend against these baseless claims", Franklin Templeton said in a statement.
"We believe the circumstances of the situation speak for themselves and that the company responded appropriately". The man, a prominent birder and LGBTQ activist, said he asked her to put a leash on her dog in an area of New York's Central Park known as the Ramble, which requires dogs to be restrained.
Amy Cooper, who was promptly dubbed the "Central Park Karen" by social media users, argues in the lawsuit that Christian Cooper (hereafter referred to as "Christian" since they have the same last name) was an "overzealous birdwatcher" who was looking to scare dog owners.
He said he was uncomfortable with the mass outrage directed at Ms Cooper, adding to the Times, "If our goal is to change the underlying factors, I am not sure that this young woman having her life completely torn apart serves that goal".
"I'm taking a picture and calling the cops", she says in video of the incident.
"We do not tolerate racism of any kind at Franklin Templeton", the statement on Twitter continued.
"Franklin Templeton would have known that if [they] had performed the investigation it told the public it had conducted", her lawsuit read.
The lawsuit alleges that Franklin Templeton "did not seek to interview Jerome Lockett or anyone else familiar with Mr. Cooper's past in Central Park to obtain their perspective".
Christian Cooper told NBC News and the New York Times that he is often in the Ramble and asks for dogs to be leashed to preserve the area's environment and wildlife.
The Manhattan District Attorney's Office in February dropped a misdemeanor charge against Cooper after she completed education and therapy classes on racial equity.
In July, Amy Cooper was charged with falsely reporting an incident in the third degree.
Once criticised all over the world for being a racist, Cooper is now accusing her employer of being a racist and is seeking damages for defamation, intentional infliction of emotional distress and negligence, as per Reuters.