In April the fast food chain released a series of American Idol Happy Meal toys in the US based on a range of music genres, including Disco Dave, Country Clay, Rockin' Riley and Soulful Selma.
Devo's complaint relates to New Wave Nigel, a toy kitted out in an orange jumpsuit, pink shades, and Devo's "energy dome" hat....
"We are in the midst of suing them," Casale told AAP.
"This New Wave Nigel doll that they've created is just a complete Devo rip-off and the red hat is exactly the red hat that I designed, and it's copyrighted and trademarked.
"They didn't ask us anything. Plus, we don't like McDonald's, and we don't like American Idol, so we're doubly offended."