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The phrase "lawsuit based on" is correct and usable in written English.
This phrase can be used to indicate that a lawsuit is being brought about due to a certain issue or situation. For example: "The disgruntled employee filed a lawsuit based on unfair labor practices."
Exact(29)
If Vermont's law isn't smacked down over a lawsuit based on a First Amendment challenge (pdf) or one over interference of interstate commerce, it could be smothered another way.
A federal appeals court had thrown out the lawsuit based on the "state secrets" privilege.
A lawsuit based on that claim alone, the judge ruled, could continue.
(Disclosure: as a lawyer, I have considered a potential lawsuit based on this First Amendment claim).
Mr. Li said they threatened him with a lawsuit based on a secret recording of a meeting about the sale.
He said Friday that he was filing his lawsuit based on the fact that the tax authorities had not followed proper procedures in bringing their case against him.
Similar(27)
A variety of lawsuits based on Disabilities Act provisions have been brought against online companies, notably one brought by Mr. Gashel's organization against AOL in 1999, but the suits were settled before judges could offer clear guidance on how, or whether, the law applied to Web sites.
His view could rule out most antifraud lawsuits based on FOIA requests.
Private lawyers in Louisiana have filed similar lawsuits based on the testimony of former claims adjusters.
But then he proceeded to denounce the Democrats for filing lawsuits based on political motivations.
They stood to benefit from a corrupt bargain they struck with the lawyers who brought lawsuits based on the inspections.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com