The suit alleges that Moshe Lax, his sister and his late father engaged in "sham transactions" to evade tax liability.
The Republican running for governor in California said he was quoting a survivor who had to wait in line for four hours.
"He provided the vehicle to allow me to perform and express myself," the late "Queen of Soul" said of Jerry Wexler.
For the second time, the billionaire World Jewish Congress president has used a newspaper op-ed to lambaste Netanyahu's agenda.
Scrutiny of his record on Israel and accusations of anti-Semitism are paradoxically helping to galvanize support for the embattled Labour leader.