The Academy Award-winning actor, 45, filed the lawsuit Friday against Samuel J. Levin and his firm.
"Instead of protecting and preserving Cage's wealth during one of the greatest economic periods in the country's history, Levin placed Cage in numerous highly speculative and risky real estate investments, resulting in Cage suffering catastrophic losses," the lawsuit states, according to the news agency.
According to the lawsuit obtained by the AP, Cage trusted Levin's statements and advice and therefore was unaware of his financial trouble until after he hired new management. Levin was Cage's business manager from 2001 to 2008.
The lawsuit comes during a difficult financial time for Cage, who was recently accused of owing $6.3 million in back taxes.