Damien McKiernan is reportedly suing Mrs Brown's Boys creator Brendan O'Carroll alleging unfair dismissal.
The actor, who took over the part of Rory Brown in the comedy in 2017, was dropped from the most recent festive specials along with co-star Gary Hollywood following an alleged dispute over pay parity.
Last week Hollywood revealed that he is taking legal action against O'Carroll and the BBC over the manner of his exit from the show, claiming that he was "disregarded" and "discarded" after questioning why his pay was lower than that of some of his co-stars.
Now McKiernan is said to be following suit, with an insider telling the Daily Star: "Damien has decided to take legal action. He doesn't feel like he has been fairly treated and wants justice.
"Damien is devastated. The decision to drop him from the show came out of the blue.
"He doesn't feel like it was fair and he wasn't given a proper explanation. He thinks the way he's been treated is appalling, so wants to take action."
O'Carroll has yet to comment on the pair's decisions to pursue legal action.
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